Let's quit mis-educating our economists

The Arguments of the Great Recession Are Over. Hooray.

Consumer demand is strong enough to sustain a recovery, but not strong enough to give workers any bargaining power.

Here Jonathon simply spouts the great Keynesian backwards. How do I, demanding a $20,000 new car, increase my income? An employer says, "boy, you have high levels of consumption, I should hire you?"

This is all about Keynes making the wrong assumptions, add to that the inclination of economists students looking for any confirmation bias and you get upsidownism. Keynes needed to make a separability argument, we are all independent of each other, so he could justify his policy.  It never was true. Ricardo never left the room, the PIH is wrong, we do not assume regular deliveries. We do not generally have cycles, instead we restructure and have been doing so all throughout the industrial revolution.

When the Keynesian discovers that we agents are not Keynesian, they blame us. It is our fault for being something different than Keynes imagined. We need theory of counterfactuals., which the rationalists are stuck trying to define, basically the theory of the null hypothesis, just to talk to the Keynesian.