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Why The Keynesian Superstition Doesn't Work
#21
The current unemployment rate in America is 9.1%, according to the Bureau of Labor Statistics. If people are unemployed, their ability to consume goods and services is greatly diminished. How can you oppose Obama's job creation legislation when the entire economy depends on consumer spending?

Also, what would be an alternative method of stimulating the economy? Tax cuts have already been attempted with rather disappointing results.
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#22
(10-17-2011, 12:17 AM)Gommi Wrote: The current unemployment rate in America is 9.1%, according to the Bureau of Labor Statistics. If people are unemployed, their ability to consume goods and services is greatly diminished. How can you oppose Obama's job creation legislation when the entire economy depends on consumer spending?

Also, what would be an alternative method of stimulating the economy? Tax cuts have already been attempted with rather disappointing results.

How can you continue to keep parroting all this Keynesian Horse manure, when it keeps proving to everyone that the entire economy doesn't depend on consumer spending. It depends on INVESTMENT first. Consumer spending is the Ass End of the equation. And expecting the Almighty G-d Damned State to do all this is sheer folly.

What do you think you are: Einstein of something "G"? You, and you kind, just keep saying and doing the same thing, over and over, and over and over, and over...............................and nothing gets done. Meanwhile the country is broke as a result of all this intellectual stupidity.

You people are totally crazy! You have just enough intelligence get all of us destroyed.

Have you even remotely considered that you may just be wrong? For once?
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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#23
To give you a more detailed answer gommi, many people suggest:
1. that excessive regulations have stymied industry, thus regulations should be rolled back to sensible levels. Perhaps regulatory agencies should be required to do an "economic impact" study of each new regulation before it is put into effect. Perhaps congress should take an active role in reviewing and/or approving regulation.
2. uncertainty about taxes in the future inhibits investments, thus the government needs to get its financial house in order. There are many levels to "putting the government's financial house in order".
3. uncertainty about the labyrinthine Obama care bill, which is still being fleshed out with thousands of pages of regulations, thus this bill should be repealed
4. complexity of the tax code with favoritism unequally applied, thus the tax code should be vastly simplified and subsidies repealed
5. unequal application of laws, thus the government must return to the rule of law and obey the 14th amendment


for example.
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
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#24
Here is a very nice article, that highlights Henry Hazlitt's take on all this Keynesian attitude of throwing money at the problem, expecting Big Government to solve the problem of unemployment: Visible Projects, Hidden Destruction

Quote:The real cost of government efforts at job creation.

Today's crop of central planners and big spending politicians could learn a thing or two about economics from Henry Hazlitt's classic bestseller, Economics in One Lesson, published in 1946. Common sense doesn't have an expiration date.

"There is no more persistent and influential faith in the world today than faith in government spending," Hazlitt wrote. "Everywhere government spending is presented as a panacea for all our economic ills. Is private industry partially stagnant? We can fix it all by government spending. Is there unemployment? That is obviously due to 'insufficient private purchasing power.' The remedy is just as obvious. All that is necessary is for the government to spend enough to make up the 'deficiency.'"

With "public works" viewed primarily as a means of "providing employment," explained Hazlitt, an endless array of projects will be "invented" by the government. The "usefulness" of the final product or the likeliness of success of a project, whether it's a bridge to nowhere or a bankrupt solar panel company, "inevitably becomes a subordinate consideration."

In fact, once creating jobs is viewed as the chief purpose of government spending, said Hazlitt, a project with more waste and more inefficiency in its implementation, and less labor productivity, will be viewed as superior to a less wasteful project. The "more wasteful the work, the more costly in manpower," he explained, "the better it becomes for the purpose of providing more employment."

A key fallacy in this thinking, Hazlitt explained, is that it ignores the incomes, wealth and the jobs that are "destroyed by the taxes imposed to pay for that spending." What's visible is the new school or new road, but what is unseen are those things that were lost through higher taxation, the unbuilt homes and unbuilt cars that don't exist because of the money that was redistributed away from those who earned it in order to pay for inefficient make-work projects. What is unseen are the unbuilt stores and unbuilt factories, the uninvested funds and the new enterprises that would have been created.

And so we end up with politicians cutting ribbons at new $500 million per mile tunnels, acting as if they've created something. No one at the celebratory event sees what is invisible, what has been destroyed. No one sees how the tunnel's funding and taxes created disincentives to entrepreneurial risk-taking and investing. No one sees the tunnel as an obstacle to economic growth, a job killer.

Rep. Don Young (R-Alaska), for instance, likes the idea of the rest of us paying $315 million to build a useless and costly bridge in rural Alaska to an island with only 50 residents, an island that's already sufficiently accessible via a 7-minute ferry ride.

Giving a free $2 million yacht to every man, woman and child on the island would have been $215 million cheaper than the bridge, but Rep. Young was Chairman of the House Transportation and Infrastructure Committee, not the owner of a yacht company.

Economically nuts as it was, the U.S. Department of Transportation approved the useless bridge in Alaska project is 2004. Funding was later cancelled, but the bridge, like the irrepressible Jason in Friday the 13th, received funding again in the 2011 federal transportation bill. Rep. Young is currently the senior Republican on the House Transportation and Infrastructure Committee.

"We can see the men employed on the bridge," wrote Hazlitt, discussing visible benefits and hidden costs. "We can watch them at work. The employment argument of the government spenders becomes vivid, and probably for most people convincing. But there are other things that we do not see, because, alas, they have never been permitted to come into existence."

And again, for Gommi's, and other Keynesian Collectivists benefit out there, it is the "Unseen" which is the most important, yet most overlooked issue. Keynesians, and intellectually myopic observers, are hard pressed to see between the sheets, or read between the lines. And Static forecasting/prediction is the norm, instead of Dynamic reality.

And it is why 'common sense' is so valuable: it is not commonly available.
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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#25
Actually, there are two issues with this story.

First, the Keynesian model doesn't work, and the CBO director, in spite of trying to wiggle out of it, has actually admitted that all that 800 plus billions of dollars in 'so called' stimulus money, is going to be a drag on the economy. CBO Director Admits Stimulus Will Shrink Economy

Well, Surprise, Surprise, Surprise!

But second, and perhaps even more important is that you will not find any of this anywhere within the Whore Media. And the Whore Media is supposed to be made of people who inform the citizenry and preserve Liberty.

Can you think of any other reasons why you should utterly despise the Whore Media?
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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#26
Sacred cows: "the gummint knows best", education is worth every penny (oops million $) we spend on it, Keynesianism works, crime is due to poverty, CO2 is a pollutant, ... .

Life was so much simpler in the '30's. All a politician needed to say was "there will be a chicken in every pot".
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
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#27
The only saving grace for our future is the future. I speak of technology and the ability to research and learn truths in the face of liars and deceivers. They say Erasmus was the last man to know everything, but thank goodness our technology expands as fast as it does to help us bridge that gap.

One of the gaps is history. They also say winners write the history - but here, as well, historians will trump the winners in the long run. Look at Mussolini...he was feted for making the trains run on time. Yet now we know his publicists lied. They didn't run on time - the state-controlled newspapers just said they did. FDR was celebrated for ending the Recession. Yet now we know he extended it far longer than what would have happened if the free market was allowed to work.

Propagandists form focus groups and seminars to create a public consensus. For them, a few catch-phrases and paid-for media whores will push their image creations - but they can't last in the long run. They bank on the long run coming too late to stop their immediate plans.

The faster technology accelerates, the more knowledge can get out there to combat the clever disinformation.
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#28
Well, its now official: Krugman: We’re in a depression, you know. The standard bearer of what passes for Keynesian economics this day and age, has pronounced it. And he did it in passing, as though everyone should know this. This should be guaranteed to result in no more kudos from the Obama administration, who are trying to show us all that we are fully clothed, even though we look naked, and are shivering in the cold. Thank you Dr. Krugman for confirming the obvious.

But note his typical idea on how to solve the problem: Spend, Spend, Spend! Of course, this didn't work with Hoover, or FDR, during the long run of the Great Depression, so why does this genius believe it will work today?

Quote:Krugman says that the $787 billion 2009 stimulus bill, the American Recovery and Reinvestment Act, was "the biggest job-creation program in U.S. history," but "woefully inadequate to the task," a lament familiar to his column readers.

"Worse yet, the failure of the stimulus to deliver clear success had the effect, in the minds of voters, of discrediting the whole concept of using government spending to create jobs," Krugman writes.

To most of us with common sense, if something doesn't work, stop doing it and try a different approach. But not the Left, armed with what they are certain is the Holy Grail to success: borrow and spend like there is no tomorrow. The only problem is that we are not going at this hard enough, and must do it even more. If the hole one is in is only six feet deep, and you can't climb out, then keep digging until it is ten feet.

This is what passes for common sense on the Collectivist Left. And this is why Collectivism has never been successful, and never will be. But thank you anyway Paul Krugman.
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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#29
Ron Paul gave Krugman a thorough beating the other day on Bloomberg.

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#30
What I found most interesting is how the two appear during the introduction. One was comfortably calm, and the other was clearly apprehensive. I think that said a great deal.
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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#31
Krugman does not seem to know what happened after WWII to spur US growth. As I recall, the Republicans took over congress and rescinded much of FDR's policies. This lifting of the onerous burden of government (and military expenses and the energy of the returning soldiers) caused the prosperity. This can be found in either of the recent books about FDR and the depression by Schlaes and another by Folsom.
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
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#32
Expecting Krugman to agree with, much less read, those critics of that which he holds dear, may perhaps be a bit much?
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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#33
True, but he passes off himself as an expert of those times.
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
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#34






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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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#35
This is just one more example, of countless examples, of why the Keynesian Superstition is not only wrong, but terribly dangerous. And remember this is coming from the head of the IMF, who resembles a male/female hybrid on top of all that.

Quote:IMF: ‘Climate change will create jobs’

Christine Lagarde, the managing director of the International Monetary Fund, said Thursday that climate change will drive job creation.

“Climate change will create jobs. It will create disasters before it creates jobs, but it will create jobs,” Lagarde said on the MSNBC program “Morning Joe.”

Her remark came in a wide-ranging interview about the global economy.

And these 'so called' economic experts are supposed to be managing the world's money supply?

Have she/they never heard of her fellow countryman, Frederick Bastiat, and "The Broken Window Fallacy" before? I realize that it is difficult to walk around all over the place with one's head stuck up one's rectum, but my G-d, this is completely pathetic.

And equally pathetic is that the hosts of that sorry MSNBC program actually were so ignorant they didn't call her on such a brain fart.
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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#36
Another great source on why Keynes was deified is presented in Burton Folsom's book, FDR: New Deal or Raw Deal. It is so clear now that the historic scholars were invested in hopeful sycophancy - rather than professional historic analysis. With all the historians spouting misperception instead of fact, the Leftist educators made sure every kid in their clutches heard the same thing. It's no wonder so many today are so bent - it's surprising so many have self-educated themselves out of it.
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