Mises Vesus Keynes: And the Winner Is Politics

The current economic crisis has the two schools of economic theory, one associated with Keynes and the other with Von Mises, at odds over the cause and cure.  Mises would blame government expansion of credit for the boom and recommend that government stop intervening and let the market readjust for the cure.  Keynes would blame private risk taking and recommend that the government stimulate the markets with spending and lending.  What recent events have shown is that Mises failed to take into account politics -- the need for politicians to do something in a crisis.  With the illusion of control, Keynes theory will usually win in a crisis -- as it currently has.