Keynesian theory maintains the destructive idea that spending is all-important. By viewing the GNP equation [C + I + G = GNP], one can easily see why Keynesian economists, who control the levers of government, believe that it is possible to "stimulate" the economy with government money.
The key fallacy embedded in Keynesian economics and the GNP equation is the idea that government spending adds to an economy's health. In reality, the opposite is true: government spending subtracts from an economy's health. The real economy is the private economy — there is no other. Government spending must come out of the private economy .. and further stifle its ability to increase the nation's wealth by reducing capital formation.
Keynesianism institutionalizes the tragedy of the commons and believes that the fallacy of composition does not apply. It ignores the fact that government spending must come either from tax dollars or from the printing presses, both of which harm the common man. Instead, Keynesianism promises that we can all pick one another's pockets — and all get rich doing it!
The only solution is to declare Keynesianism as dead as its author, end all parasitical government spending, and free the economy from the tyranny of bureaucrats armed with restrictive regulations.