First let me say that I also believe that Keynesianism is nonsense but…
Today the 6 largest economies in the world are the US, China, Japan, Germany, France and England. What’s notable about this list is that only 1 of those countries was left standing in 1946 the rest were in ruins. When you’re the only country open for business it doesn’t matter how stupid your politicians are you’re going to have a booming economy.
Let’s not talk about the economy today. Nixon had the economy wrong too and got massively reelected, but there was that certain, what were the words, “cancer on the Presidency” to face?
Let’s talk about A.G. Holder and President Obama invoking executive privilege. Let’s talk about the local Madison, WI CBS affiliate (local, not national news no less) report this today on the noon TV as having to do with Fast and Furious, described by the local news anchor as “having to do with a botched government sting operation involving gun running.”
Yeah, yeah, they left out who got killed in this (How many people lost their lives in Watergate?). But “botched government sting . . . involving gun(s)”? Wow, never thought those words would come out of the TV receiver.
Since when has the federal government ever did the keynesian model?
When the economy is in a downturn, the governemt should, cut taxes, increase the money supply, increase government highering, increase infrasturcture spending et cetera.
That is the only part of Keynes model that seems to exist, but like Paul Harvey there is a rest of the story. Once the economy revcovers and starts heating up you so the exact opposite. But since they are not politically good for a reelection congress never did ALL of what Keynes suggested.
Raise taxes, decrease the money supply, cut government jobs, cut government spending, to slow an over heating economy and stop the bubble from bursting.
Instead once congress puts on the gas, they never take their foot off because that will lose an election. People only seem to know about half of it.
All you need to know is for every public employee we lose several private employees. Cut. Cut. Cut… to the bone.
Note how the article points out more lying with statistics. The favorite tactic of lying lefties everywhere.
But iof we cut government spending, statists like Jim and Gerrib will be so depressed their avenues for legalized coercion have been lessened that they’ll probably be lobbying for Obamacare just so they can afford Prozac.
The prescriptions that Keynes devised were specifically targeted at the amount of autonomous spending within the economy. And the fix was meant to address the problems with just the Great Depression itself. It wasn’t meant as a cure all for anything and everything that ails an economy. But politicians, fearful of massive devaluation the likes of which the Great Depression experienced, think that every single recession, no matter how big or small, the answer is always to fire up the presses and inflate our way out of the problem. And the politicians don’t mind the inflation because it helps certain players with the economy; particularly at the beginning stages of inflation. And it allows them to pull tricks like cutting taxes and simultaneously increasing gov’t spending. But by inflating the money supply it moves people into higher tax brackets and they actually end up paying more in taxes. So, sufficient levels of inflation are really nothing more than a form of taxation without representation. But eventually the skyrocketing cost of goods and serves catches up and the economy enters a slump again. The politicians have a very hard time resisting the urge to push the money out even faster to try and get back to the good times that investments during early the stages of inflation enjoy. But it starts a vicious cycle that is very hard to break free from.
Eh …
Besides the point Dr.D. made, the other point is we’d just spent the previous decade living way, way below our economic capacity, and investing much of those savings into private sector industrial capacity to make tanks, planes, etc., and the public infrastructure necessary to transport all those munitions from the factories to the front.
It just so happens that those investments we made during WWII were easily retooled to make cars, white goods, and other goods that increased the standard of living.
We are also engaging in “catch up growth” from the Great Depression.
There are several reasons why we grew so quickly during those years. Don’t confuse correlation of one data point with causation, like the liberals do when they point to the high tax rates during that era.
First let me say that I also believe that Keynesianism is nonsense but…
Today the 6 largest economies in the world are the US, China, Japan, Germany, France and England. What’s notable about this list is that only 1 of those countries was left standing in 1946 the rest were in ruins. When you’re the only country open for business it doesn’t matter how stupid your politicians are you’re going to have a booming economy.
Let’s not talk about the economy today. Nixon had the economy wrong too and got massively reelected, but there was that certain, what were the words, “cancer on the Presidency” to face?
Let’s talk about A.G. Holder and President Obama invoking executive privilege. Let’s talk about the local Madison, WI CBS affiliate (local, not national news no less) report this today on the noon TV as having to do with Fast and Furious, described by the local news anchor as “having to do with a botched government sting operation involving gun running.”
Yeah, yeah, they left out who got killed in this (How many people lost their lives in Watergate?). But “botched government sting . . . involving gun(s)”? Wow, never thought those words would come out of the TV receiver.
Since when has the federal government ever did the keynesian model?
When the economy is in a downturn, the governemt should, cut taxes, increase the money supply, increase government highering, increase infrasturcture spending et cetera.
That is the only part of Keynes model that seems to exist, but like Paul Harvey there is a rest of the story. Once the economy revcovers and starts heating up you so the exact opposite. But since they are not politically good for a reelection congress never did ALL of what Keynes suggested.
Raise taxes, decrease the money supply, cut government jobs, cut government spending, to slow an over heating economy and stop the bubble from bursting.
Instead once congress puts on the gas, they never take their foot off because that will lose an election. People only seem to know about half of it.
All you need to know is for every public employee we lose several private employees. Cut. Cut. Cut… to the bone.
Note how the article points out more lying with statistics. The favorite tactic of lying lefties everywhere.
But iof we cut government spending, statists like Jim and Gerrib will be so depressed their avenues for legalized coercion have been lessened that they’ll probably be lobbying for Obamacare just so they can afford Prozac.
The prescriptions that Keynes devised were specifically targeted at the amount of autonomous spending within the economy. And the fix was meant to address the problems with just the Great Depression itself. It wasn’t meant as a cure all for anything and everything that ails an economy. But politicians, fearful of massive devaluation the likes of which the Great Depression experienced, think that every single recession, no matter how big or small, the answer is always to fire up the presses and inflate our way out of the problem. And the politicians don’t mind the inflation because it helps certain players with the economy; particularly at the beginning stages of inflation. And it allows them to pull tricks like cutting taxes and simultaneously increasing gov’t spending. But by inflating the money supply it moves people into higher tax brackets and they actually end up paying more in taxes. So, sufficient levels of inflation are really nothing more than a form of taxation without representation. But eventually the skyrocketing cost of goods and serves catches up and the economy enters a slump again. The politicians have a very hard time resisting the urge to push the money out even faster to try and get back to the good times that investments during early the stages of inflation enjoy. But it starts a vicious cycle that is very hard to break free from.
Eh …
Besides the point Dr.D. made, the other point is we’d just spent the previous decade living way, way below our economic capacity, and investing much of those savings into private sector industrial capacity to make tanks, planes, etc., and the public infrastructure necessary to transport all those munitions from the factories to the front.
It just so happens that those investments we made during WWII were easily retooled to make cars, white goods, and other goods that increased the standard of living.
We are also engaging in “catch up growth” from the Great Depression.
There are several reasons why we grew so quickly during those years. Don’t confuse correlation of one data point with causation, like the liberals do when they point to the high tax rates during that era.