"Dan Mitchell of the Cato Institute does an excellent job explaining why Keynesian fiscal strategies do not work in this new video from the Center for Freedom and Prosperity Foundation. It’s more important than ever to combat the myths of Keynesianism with President-elect Barack Obama proposing a massive government spending plan, and even some conservatives promoting a tax version to boost economic growth.
Keynesian Economics Is Wrong: Bigger Gov't Is Not Stimulus [ame="http://www.youtube.com/watch?v=VoxDyC7y7PM"]Keynesian Economics Is Wrong: Bigger Gov't Is Not Stimulus - YouTube[/ame]
Read Murray Rothbard's Keynes the man. If you look up some of Keynes' quotes, you're amazed how people take him so seriously.
His economic philosophy simply comes closest to the emotional reasoning of the Left that the state should be the end all and be all of human existence.
You are correct, GeorgeDickstein. All these people do is take water (money) out of one end of the pool and pour it into the other end of the pool and expect the water level (the economy) to somehow rise! Foolish! very foolish indeed!
What James Cessna and his video friend are not saying is that in pursuit of a long-term solution to the rising deficit, the Neo-Classcists will actually inflict MORE short-term pain. Government spending cuts will cause more unemployment and will cause a contraction of the economy if they are at the levels necessary to tackle the deficit. It makes much more sense to wait until the economy has covered somewhat and then bring in what amounts to austerity measures for the federal government. What really has me worried is that the Republicans won't factor in the lost revenues from a reduced tax base and thus will achieve a maximum of pain for a minimum of result (towards slaying the deficit). Why bother with austerity and its negative effects if the positive effects are negligble?
The failure is of unAmeri-cons to completely destroy the economy. They've done everything possible to kill it and are close again, but still can't manage to complete it, where's the knockout blow boys? And don't make me laff with 'it's coming in '12', HA! The gross incompetence in every negative thing they try is stunning... Afghanistan, Iraq, our economy, elections, etc. How hard is it to complete the game for these bums? Do they ever finish anything? They have Obama on the ropes, and he's doping them into the mat face first just like Ali did to Foreman. TIMBER! The inability to do a F'n thing is incredible, and it's the only thing keeping this country afloat while they stuggle to sink it is the massive amounts of sheer stupid negative incompetence. Obama pulled Bush's deadly dick out of this country's ass and cons want to ram it back in hard and fast until they've finished America off.
Well, the news stations sure don't want the economists on the air for some reason. Why do you think that is?
You have utterly and absolutely zero, zilch, notta idea what you are talking about in anyway shape or form. No offense, but you sound like you are regurgitating Racheal Maddow and Keith Olbermann talking points who are equally clueless about what is reality.
The really really sad part is that the liberals, many on this forum believe all those hundreds of thousands of dollars per job was a good thing. can you believe these fools?
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.
That, and the fact that NAFTA benefitted every economy except ours. The tax breaks for hireing over seas is alone incentive enough for manufacturing to relocate, but lets not forget union inflationary contracts priced themselves out of a job. There has to be a way to balence this situation without becoming too protectionist and denying the realities of the global economy. We nned to see that after WWII things were great here because all the other industrial nations lay in ruin and we were the only game in town, now, not so much.
Havn't heard Olbe in a year, hardly ever hear MR, maybe they have their finger's on the truth as well, and you're still sitting on your head? I guess you'd prefer watching 750,000 jobs flying out the window every single month, as they were under Bush?
You are very correct, Consmike. This review was very good. "The overarching portrait of chaos, lack of intellectual depth and absence of political wisdom, from a Pulitzer Prize-winning former reporter at this paper, rings true."
Granny says, "Dat's right - Congress needs to get off their duffs an' do somethin'... Bernanke calls long-term unemployment a national crisis and urges more help from Congress September 28,`11 WASHINGTON Unlikely revolutionary: Since he was selected in 2005 to replace Alan Greenspan as chairman of the Federal Reserve, Bernanke has made bold, unprecedented moves in an attempt to bolster the U.S. economy.
This discussion was very good. The ultimate test case for the Keynesian model, of course, is the American Recovery and Reinvestment Act, which promised that 3.5 million private sector jobs would be created at a price of $787 billion. The President warned that if the stimulus were not signed into law, the country could face 8.8 percent unemployment. One only needs the post-enactment facts in order to ascertain the success of the stimulus bill: • 862,000 jobs created at an average cost of $282,000 per public sector job and $647,000 per private sector job • Four of five jobs created are in the public sector • Government spending is not correlated to areas of high unemployment, and • The rate of unemployment has reached 9.3 percent after peaking at 10 percent. The facts confirm the Barro and Redlick—and countless others’—research. The Keynesian model didn’t work in the case of the current recession, and even if one accepts the stimulus as an a priori good, it is unsustainable at its current rate. According to David Primo, associate professor at the University or Rochester, “Bailing out states rewards their bad behavior.” When states receive federal funds to sustain their spending habits, they are not forced.
you are correct, MaxGeorgeDicksteinXXXI. The past attempts by Obama to rescue the economy show once and for all Keynesian economic policies do not work!
Point well taken, DonGlock! "Socialists cry "Power to the people", and raise the clenched fist as they say it. We all know what they really mean power over people, power to the State." -- Margaret Thatcher