JONATHAN CHAIT MAY 7, 2010
Niall Ferguson, in his review of Richard Posner's latest book, sounds like a genuine crackpot:
“As an economic power,” Posner concludes, “we may go the way of the British Empire.” Indeed. It seems not to have struck the judge that British decline and the rise of Keynesianism went hand in hand.
Ferguson thinks that the British Empire fell because of Keynesianism? Really? There are so many things wrong with that theory I don't know where to begin. For one, Britain was not the only world power to adopt Keynesianism. The United States did too. Remind me what happened to American world power in the several decades that followed.