OBAMA'S FAILED KEYNESIAN ECONOMIC POLICY


Keynesian economic theory postulates that nations can borrow and spend, as well as devalue, their way out of economic distress. It was promoted by liberal British Economist, John Maynard Keynes in the 1930's and has long been the the predominant economic theory taught by liberal academic economists (virtually all academicians). It is also the economic policy of the Obama administration. Keynesianism has failed profoundly wherever practiced, yet the Liberals/Progressives continue to promote it. The practice of Keynesianism, along with public service unions, have destroyed the socialist PIIGS of the EU economically. 

Burdensome debt, now at 102% of GDP, with unfunded entitlements taking it to 400+% of GDP, will do the same to America. Don't doubt it!

Obama's Keynesian spending “stimulus” is also a huge failure, notwithstanding claims of success by the administration and its sycophantic media. Obama and Jeffery Immelt, the “Jobs Czar,” were foolish, irresponsible, immature, unpresidential and just disgusting when they made a joke about its failure. Obama simply laughed and said, “I guess shovel-ready jobs weren't as shovel-ready as we thought,” hence, hence obfuscating the failure.

The piece posted below is from friend, Eric, a thinking person. There is much more to say about failure of Keynesianism, but this is a good write. Recently, a doctor friend of the liberal persuasion wrote in our local paper that “it's time to quit talking down about Keynesian theory,” probably in part to rebut my essays. It isn't! It's time to educate the masses on just the fallacy of a theory that has never been proven in practice...and how it is the wrong policy for America.

The end of the Keynesian era

New York, NY - The beginning of the Keynesian Era can be dated, perhaps, to September 1931 - the year when Britain intentionally devalued the pound, throwing the world into turmoil and currency conflict.

Today, we are again in an extended period of economic crisis. However, I suspect that this will turn out to be the end of the Keynesian Era - the time when it is, in fact, Keynesianism itself which destroys us.

"Keynesianism" is really just this century's version of Mercantilism, which dates from the beginning of the 17th century. There's nothing particularly new or original about it. Behind the billows of academic obfuscation, it amounts to two policies: exaggerated government spending in the face of recession, and some sort of "easy money" policy. Although the term "Keynesian" has become unfashionable, virtually all academics and government economic advisers are Keynesians today.

The primary attraction of Keynesianism, is not its wonderful overall results, but rather, that it provides a good excuse for politicians do to what they wanted to do anyway. Any politician knows that a certain way to increase one's popularity is to hand out government money. In a recession, politicians are likely worried about their declining popularity, and thus their first instinct is to hand out more money. The Keynesian economists often boast that the money can be spent on total waste, such as "digging holes and filling them back up".

The other Keynesian trick is some form of "easy money" policy, which usually results in a decline in currency value. Currency devaluation can, in some cases, result in what appears to be a short-term improvement in economic conditions. However, it is said that "you can't devalue yourself to prosperity", and it is true.

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