Keynes was wrong.

I recently watched M.L. Nattakorn Devakula's Keynes ผิดและ Keynes ตายแล้ว, and it was truly true. Exploring Keynesian economics and its interplay with the state and bureaucracy is incredibly insightful. As a lover of Adam Smith, this highlighted the fascinating evolution of our economic journey. The extensive government debt, taxes, and regulations all originate from an economist who wants to play a role in politics. And with Keynesian ideas' profound impact on our current landscape.

In the long run, Keynes is dead, and we are still alive.

Keynes is deceased, and his ideas have proven problematic. If you believe the government should address economic issues, you’ll follow Keynesian thinking. However, if governments continue spending and intervening, as Thailand has since the 1960s, they end up using future taxpayers' money without solving real structural problems. Instead of allowing the free market to function, politicians feel compelled to intervene. Before the 2008 financial crisis, U.S. government policies encouraged excessive mortgage lending, leading to the housing bubble and subprime crisis. The crisis occurred because state-backed easy credit created bad assets. In Thailand, around 80% of politicians follow Keynesian economics, consistently pushing stimulus policies. This is a trap; economists in politics design policies that increase state power and intervention, even though free markets could correct themselves naturally. The government should focus on basic infrastructure (roads, ports, IP protection) but not on trying to directly stimulate or "fix" the economy. Over-intervention merely raises public debt and creates new crises. Even military governments fall into this trap. The government attempts to fix private sector problems, but it often creates new problems instead.

Politicians, influenced by Keynesian economics, believe they must constantly stimulate the economy. This mindset traps them in a cycle of borrowing and spending, raising public debt.

Adam Smith believed the government should remain limited. Overactive government intervention, as supported by Keynesians, leads to economic failure. Under Trump, simply allowing the market to function led to economic strength. Believing that government action leads to a better economy is a significant misunderstanding.

Keynes was influential, but his interventionist ideas ultimately didn't work.

Hayek’s believed

Hayek believed that the government should only create a legal framework (like laws to protect private property and enforce contracts), not manage the economy directly. Hayek argued that free markets naturally allocate resources better than any government could.

The less the government intervenes, the healthier the economy becomes.