Where Keynes Went Wrong: A Discussion with Author Hunter Lewis
"Spend more, save less, grow wealthy" sounds like counterintuitive advice. But many world governments use this dictate for their own economic policy, and the idea came from one of the most influential economic thinkers of the last century, John Maynard Keynes. In this Profit through Process podcast, Genna Weiss of Six Sigma IQ speaks with Hunter Lewis, author of Where Keynes Went Wrong: And Why World Governments Keep Creating Inflation, Bubbles, and Busts, who argues how this "paradox of thrift" and other seemingly paradoxical assumptions under the Keynesian economic program continue to drive world governments to intervene—to detrimental effect—in the global economic system.
Lewis, a co-founder of Cambridge Associates, LLC, a global investment firm whose clients include leading research universities, charitable organizations, and families, and the author of six books discusses the central basis for why the Keynesian economic model has proven to be a disaster for world governments. He explains the key assumptions underlying the Keynesian model and how they have been disproved over time based on empirical and historical data. In addition, Lewis shows how the Bush and Obama administrations have both based their economic policies on the Keynesian model. He argues that these policies are taking the United States down a road that will lead to more bubbles and busts unless the U.S. government takes decisive action to break free from this cycle.