Higgs lays out six areas where the Keynesians especially are weak, including:
- Aggregation: Keynesians believe that they can explain an entire economy through aggregate demand, aggregate supply, price levels, and the rate of interest;
- Relative prices: The only thing that means anything regarding prices to Keynesians is the overall "price level. Higgs writes: "If relative prices change, which of course they always do to some extent, even in the most stable periods, these changes are "averaged out" and affect the calculated change, if any, in the aggregate price level only in a shrouded and analytically irrelevant manner."
- The rate of interest: Higgs points out that the rate of interest "is a crucial relative price — namely, the price of goods available now relative to goods available in the future." Keynesians, on the other hand, believe it is just a "price of money," so the lower the price, the better;
- Capital and its structure: In the short run, notes Higgs, Keynesians view capital as being homogeneous, with its only real value being the money spent in creating it. Furthermore, Keynesians see capital stock as a "given" and cannot conceive of malinvested capital, believing that capital that is not in use only is "idle," and can be revived with enough spending;
- Malinvestments and money pumping: Because Keynesians don't believe that massive malinvestments have anything to do with an economic downturn, their "solution" of pumping more money into the economy cannot have any other result except success -- provided government pumps enough money. Higgs writes that Keynesians also seem to have an abiding faith in the healing powers of inflation;
- Regime uncertainty: What Krugman calls the "Confidence Fairy," Higgs notes that the political atmosphere does make a difference regarding investment and especially long-term capital investment. He writes: "The vulgar Keynesian does not understand that policy activism itself works against economic prosperity by creating what I call "regime uncertainty," a pervasive uncertainty about the very nature of the impending economic order, especially about how the government will treat private property rights in the future. This kind of uncertainty especially discourages investors from putting money into long-term projects."