Why are Keynesian pseudo-economists still around?

Question

The basic doctrines of Keynesian economics have been repeatedly disproven. Keynesian economics says that recessions are caused by underspending and that inflation is caused by overspending (therefore, inflationary recessions such as the one in the 70s or the current one are impossible). Originally, Keynesians supported a balanced budget, over the course of the business cycle (the deficits of recessions would be paid for by surpluses during the booms), although this never happened (we haven't had a surplus since at least the 1920s).

Now, despite the fact that the New Deal was undeniably a miserable failure (the Depression was ended by the so-called "Do Nothing" Congress cutting the size of government by three fifths; it is clear that the economy did not recover from the Depression until 1947 or so), Keynesian pseudo-economist Paul Krugman of the NY Times advocates a "New New Deal" that would cause a Greater Depression.

Wasn't Keynesianism utterly discredited 30 years ago?

Answer 1

I am not a fan of Keynesian Economics, though the University I went to was a Keynesian school of thought. We have had times of surplus as late as the last Clinton years. The new deal as the great society were failures. I would contend that WW2 was what ended the great Depression.  Our current inflation is caused by increasing the money supply faster than productivity. Also the government  is cheating on the real numbers, ie they stopped tracking M3 several years ago.

In the words of a Noble Price winning Keynesian Economist-

If all else fails, immortality can always be assured by spectacular error.  

John Kenneth Galbraith

Answer 2

The best economists survive in time. Keynes took the best from other economists and he advanced in economics knowledge. He is a good economist to start with. There´re a lot of schools of economists, monetarists, keynesian, post keynesian, chicago school, austrian school,  post ricardianism etc. A scientist of the economy has to set up a range of true propositions and true axioms to begin with. Keynes cannot be used to solve modern crises but his thought can be used to modify theories and improve models.

Answer 3

Why do you blame Keynesians alone? Did we define economics as study of nature, composition, properties, laws and classification of wealth? Economists started studying application of wealth without knowing what is wealth. No one studied wealth the way chemists studied matter.

Any way, believe in this general law of wealth called Law of Conservation. Matter/energy/wealth and soul can neither be created nor be destroyed but can be changed from one form to another. Nothing will happen to American economy. This is not Keynesian theory. This theory is time tested. Believe it.