“… Keynes was a failed investor and statistician and never studied economics but was so well-connected with the ruling class in Britain that the embarrassing drivel that he wrote in his most famous book, The General Theory of Employment, Money and Interest, was immediately elevated into the status of founding truths of macroeconomics. His theory begins with the (completely unfounded and unwarranted) assumption that the most important metric in determining the state of the economy is the level of aggregate spending across society. When society collectively spends a lot, the spending incentivizes producers to create more products, thus employing more workers and reaching full employment equilibrium. If spending rises too much, beyond the capacity of producers to keep up, it would lead to inflation and a rise in the overall price level. On the other hand, when society spends too little, producers reduce their production, firing workers and increasing unemployment, resulting in a recession.
The Keynesian view of the economy is, of course, at complete odds with reality. If Keynes’ model had any truth to it, it would then necessarily follow that there can be no example of a society experiencing high inflation and high unemployment at the same. But this has in fact happened many times, most notably in the United States in the 1970s when, in spite of the assurances of Keynesian economists to the contrary, and in spite of the entire U.S. establishment, from President Nixon down to “free-market economist Milton Friedman, adopting the refrain, ‘we are all Keynesians’ as the government took it upon itself to eliminate unemployment with increased inflation, unemployment kept on rising as inflating soared, destroying the theory that there is a trade-off between these two. In any sane society, Keynes’s ideas should have been removed from the economics textbooks and confined to the realm of academic comedy, but in a society where government controls academia to a very large degree, the textbooks continued to preach the Keynesian mantra justified ever more money printing. Having the ability to print money, literally and figuratively, increases the power of any government, and any government looks for anything that gives it more power.”
The Bitcoin Standard—The Decentralized Alternative to Central Banking, pp. 139-140, Saifedean Ammous
Keynes possessed only a very limited knowledge of economics in general, and of the market processes of entrepreneurial coordination in particular