Article Review 7

This article talks about Keynesian economics in general and his stance against it. Stockman has always had a huge dislike for Keynesian economics. He talks against Janet Yellen for taking an involved approach to the economy. Stockman says that the Keynesian trick of injecting the economy with money and credit will no longer work because the country has too much debt that it needs to pay off. He argues that low interest rates are super ineffective and that it really only helps wall street achieve their end goals. Zero percent interest does not help because the housing debt has gotten lower but it has caused the business debt to get higher. The article also talks about how negative interest rates are bad and that the central bank should stay way from them because the are a big detriment. An example is how negative interest rates have killed the European economy. Stockman talks about how Keynesain economists assume that Main Street (wall street) are dependent on government interference and that is really not the case. Overall he just continues to rant about this and keeps arguing against Janet Yellen.