Keynesianism

Looks like another brick is being taken of the church of Keynesian economics:

we find that both increases in taxes and increases in government spending have a strong negative effect on private investment spending. This effect is consistent with a neoclassical model with distortionary taxes, but more difficult to reconcile with Keynesian theory: while agnostic about the sign, Keynesian theory predicts opposite effects of tax and spending increases on private investment. This does not appear to be the case.

Complete post here. This would seem especially relevant now as people look for a Keynesian solution to the current recession.