Obamanomics 101: Failure Explained

James Cessna · Oct 8, 2011

Professor Peabody said: ↑

Keynesian economics simply fails in a global economy. Back in the 1930's our economy was relatively closed to much imports. If there was an increased demand for goods created by Government spending, that demand was met by expanding manufacturing those goods on our soil, creating jobs right here.

Today, since most manufacturing is done overseas (China), an increased demand for goods created by Government spending, created expanding manufacturing those goods over there, not here. Thereby creating jobs there NOT here. That's why the Stimulus did little or nothing for unemployment.
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This analysis was very good.

In the British national health service, a government agency approves only those expensive treatments that add at least one Quality Adjusted Life Year (QALY) per £30,000 (about $49,685) of additional health-care spending. If a treatment costs more per QALY, the health service will not pay for it. The existence of such a program in the United States would not only deny lifesaving care but would also cast a pall over medical researchers who would fear that government experts might reject their discoveries as "too expensive."

One reason the Obama administration is prepared to use rationing to limit health care is to rein in the government's exploding health-care budget. Government now pays for nearly half of all health care in the U.S., primarily through the Medicare and Medicaid programs. The White House predicts that the aging of the population and the current trend in health-care spending per beneficiary would cause government outlays for Medicare and Medicaid to rise to 15% of GDP by 2040 from 6% now. Paying those bills without raising taxes would require cutting other existing social spending programs and shelving the administration's plans for new government transfers and spending programs.
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Obamanomics 101: Failure Explained

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