I've been wondering about this for a while. There is this huge misconception about what Keynes was trying say, and this isn't just regulated to the people without any economic education, but includes many people who have to deal with it. Such a list would include economists, politicians, fiscal administrators/analysts, etc, who should know the theory. I was browsing the comments regarding Bernanke addressing congress and once again was amazed at the amount of people who don't have a clue. So, I decided to post this.
This is a discussion piece as I don't have the answer as to why, but would really like to know. I realize that some of it is just...uneducated people just repeating something seen elsewhere, also that in politics, well, misdirection and outright lying is part of it, and that some people just don't understand what they've been taught, but that doesn't seem to explain the huge disparity. Is it that professors aren't teaching it right? *shrugs* So far, since I left college, I haven't come across anyone who really understands what he was trying to get across except for just a couple of people.
Not only does this include people who argue against Keynesian, it also includes those who argue for it, which just boggles my mind. Usually one side or the other don't get it, but in this case both sides of the argument don't. For example, throughout the whole of civilization, there has never been a Keynesian economy in operation, yet both sides point out examples of why it works/doesn't work. Keynes is just theory in economics, it's merit has never been tested in the real world. Yes, certain aspects happen simply because it is describing the economy, however you have to take the whole, otherwise it's meaningless which neither side understands.
Is it just a failure of the education system? Or something else?