The Failure of the New Economics
Encyclopedia
The Failure of the "New Economics" (1959) is a book by Henry Hazlitt
offering a detailed critique of John Maynard Keynes
' work The General Theory of Employment, Interest and Money (1936).
, and in light of its controversial, heterodox nature titled his article, They’ll Never Hear the End of It, writing:
Economist Ludwig von Mises
called it "a devastating criticism of the Keynesian doctrines."
Reviewer Joseph McKenna comments that Hazlitt is "grossly unfair" in comparing Keynes' statements of facts to historical events more recent than the General Theory, and that Hazlitt rejects mathematical formulations and aggregation as imperfect, while the question is, "whether the approximation is sufficiently accurate to add anything to our understanding."
Henry Hazlitt
Henry Stuart Hazlitt was an American economist, philosopher, literary critic and journalist for such publications as The Wall Street Journal, The Nation, The American Mercury, Newsweek, and The New York Times...
offering a detailed critique of John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...
' work The General Theory of Employment, Interest and Money (1936).
Overview
Hazlitt's work represents the most detailed critical analysis of The General Theory ever undertaken from an Austrian perspective. Hazlitt embarked on this project because, in his view, although general critiques of Keynes and The General Theory had been made, no critic had completed a detailed, paragraph-by-paragraph, analysis of the work and accordingly followers of Keynes could argue that previous critiques were shallow and did not indicate an understanding of Keynes' revolutionary ideas.Reception
Editor John Chamberlain reviewed The Failure of the "New Economics" in The FreemanThe Freeman
The Freeman: Ideas on Liberty is one of the oldest and most respected libertarian journals in the United States. It is published by the Foundation for Economic Education . It started as a digest sized monthly study journal; it currently appears 10 times per year and is a larger-sized magazine. FEE...
, and in light of its controversial, heterodox nature titled his article, They’ll Never Hear the End of It, writing:
Economist Ludwig von Mises
Ludwig von Mises
Ludwig Heinrich Edler von Mises was an Austrian economist, philosopher, and classical liberal who had a significant influence on the modern Libertarian movement and the "Austrian School" of economic thought.-Biography:-Early life:...
called it "a devastating criticism of the Keynesian doctrines."
Reviewer Joseph McKenna comments that Hazlitt is "grossly unfair" in comparing Keynes' statements of facts to historical events more recent than the General Theory, and that Hazlitt rejects mathematical formulations and aggregation as imperfect, while the question is, "whether the approximation is sufficiently accurate to add anything to our understanding."