Gary North had a good piece on this today. And I agree with his sentiment
KEYNESIAN CENTRAL PLANNING
The main economic problem we face today is the widespread use of Keynesian central planning by government bureaucrats and central bankers. Keynesianism has increased the level of government subsidies to various parts of the economy. This has made economic systems more fragile. They are being tinkered with by committees of government experts. Here, we can have something that resembles collapse. The best case in recent history is the USSR. But the Keynesian system is not Soviet-like in its intensity. It is a middle-of-the-road policy. It can lead to serious economic disruptions, and it has. But to speak of outright economic collapse is misleading.
The free market compensates for bad policies. Better (profit-seeking) knowledge is constantly being substituted by individuals for poor (bureaucratic) knowledge. This process happens at the margin, "little by little, line upon line." This means that economic losses produce individual allocation responses that benefit customers.
Warfare produces collapse. Liberty doesn't.
All talk about all large, complex systems using too much energy, which in turn causes an unexpected collapse, is inherently statist. It implies that the free market has created a self-destructive social order. It implies that liberty of association and the right of contract have created a sociaty-wide accident waiting to happen.
Keynesianism creates very large accidents that are waiting to happen. Keynesian black swans are very large and fly very high. It is best to stay out from under them.
But there are few signs outside of fractional reserve banking that Keynesianism has created a society at the edge of collapse. There is too much freedom remaining for that to happen, short of biological warfare or an EMP.
Collapse, No. Huge Losses, Guaranteed
