Voodoo economics

"what's happened since 2009 involves not just one, but at least five new types of voodoo:
1. The claim that artificial attempts to force wages higher will boost employment, by boosting AD.
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2. The claim that extended unemployment benefits---paying people not to work---will lead to more employment, by boosting AD.
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3. The claim that more government spending can actually reduce the budget deficit, by boosting AD and growth. Note that in the simple Keynesian model, even with no crowding out, monetary offset, etc., this is impossible.
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4. More aggregate demand will lead to higher productivity. In the old Keynesian model, more AD boosted growth by increasing employment, not productivity.
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5. Fiscal stimulus can boost AD when not at the zero bound, because . . . ?
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In all five cases there is almost no theoretical or empirical support for the new voodoo claims, and lots of evidence against."

Trechos retirados de "The new "voodoo""