TITLE:
The 21st Century Scandal Must Be Prevented: Keynes vs Hazlitt
AUTHORS:
Ezra Davar
KEYWORDS:
Keynes, Hazlitt, Multiplier, Involuntary Unemployment, Money Theory
JOURNAL NAME:
Modern Economy,
Vol.7 No.3,
March
25,
2016
ABSTRACT: This paper shows that the return to Keynes’s irrelevant and incorrect doctrines
from his General Theory has begun; hence, it must be prevented. This paper shows:
1) Hazlitt’s criticism of Keynes’s concept of the investment multiplier is entirely
correct, revealed and based on Keynes’s fundamental flaw using throughout of the General Theory, namely replacement between cause and effect; 2) Hazlitt correctly
criticized Keynes’s extremely vague and incomplete definition of involuntary unemployment
and full employment; however, he incorrectly stated that involuntary unemployment couldn’t be equilibrium phenomenon; 3) Hazlitt
successfully demonstrated that Keynes’s monetary theory was confusing, incomplete,
and even incorrect.