My Townhall.com column today discusses Henry Hazlitt’s one lesson (the original “one lesson,” not his very compelling refutation of Keynesianism) in the context of Pres. Obama’s stimulus plan:

Resorting to overturned Keynesian nostrums in the middle of a recession is as backwards as physicians today treating a deadly infection by bloodletting. Think about it: if more government spending truly stimulated the economy, then why is the economy in such a shambles after eight years of the Bush administration and Congress growing federal spending from $1.86 trillion in 2001 to $2.98 trillion in 2008?

Federal spending adjusted for inflation has increased by 48 percent since 2001 (60 percent in nominal dollars). A panicked rush to “save the economy” with a massive increase in federal spending now would be like trying to cure dysentery with Ex-Lax.

In the analogy, the laxative manufacturer would benefit. But don’t tell the patient his physic is good for a pharmaceutical company and leave it at that. That’s a load of symptom.