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Is Keynesianism dead?
Hot Air ^ | 4 Dec 2010 | Ed Morrissey

Posted on 12/04/2010 4:06:23 PM PST by mandaladon

Investors Business Daily titles its editorial today, “Keynesianism, RIP,” declaring the government-spending stimulus philosophy discredited in the wake of the 19th consecutive month of 9% or higher unemployment rates. IBD wants Barack Obama to put aside his “stubborn pride” (and his economic team) and start working with Republicans on policies that will truly stimulate the economy. But is the death certificate for Keynesianism premature?

Please, Mr. President, you and your economic team of born-again Keynesian central planners have had your chance.

Remember having to fire Christina Romer, among others, for forecasting your $800 billion stimulus bill would keep the jobless rate below 8%? Now, private economists are forecasting a 10% rate for next year. For the first time, the U.S. is facing Euro-style structural unemployment. This is no time to be raising taxes.

Yet, in a sign that ideology still trumps reality, Romer’s replacement carries on the discredited tax-and-spend torch. …

An unrepentant Obama insists the lopsided election was a referendum on the economy and not a repudiation of his policies. He says voters were “not thinking clearly” when they voted for change.

Who’s not thinking clearly, Mr. President?

(Excerpt) Read more at hotair.com ...


TOPICS: Constitution/Conservatism; Extended News; Government; News/Current Events
KEYWORDS: economics; economy; keynes; keynesian; obama
Obama will never learn...he's too cool to admit he's wrong about anything.
1 posted on 12/04/2010 4:06:28 PM PST by mandaladon
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To: mandaladon

We could hope.

We need a Constitutional Amendment apparently, to forbid the government from spending money on anything but government functions.


2 posted on 12/04/2010 4:11:55 PM PST by GeronL
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To: mandaladon

it was dead before it was alive. kinda like obama’s presidency.


3 posted on 12/04/2010 4:13:36 PM PST by the invisib1e hand (oy.)
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To: mandaladon
He says voters were “not thinking clearly” when they voted for change.

Exactly right. They weren't in 2008 when they voted the Kenyan into the White House.

4 posted on 12/04/2010 4:13:39 PM PST by Bullish
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To: mandaladon

it was dead before it was alive. kinda like obama’s presidency.


5 posted on 12/04/2010 4:13:39 PM PST by the invisib1e hand (oy.)
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To: mandaladon

Well, after the Berlin Wall fell, we all thought that Communism is dead. But we forgot to drive a stake through its heart.

Bad ideas that allow insiders to seize and hold power will be always with us.


6 posted on 12/04/2010 4:16:03 PM PST by Cicero (Marcus Tullius.)
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To: mandaladon
It's never dead.

Laying dormant perhaps.

7 posted on 12/04/2010 4:19:33 PM PST by EGPWS (Trust in God, question everyone else)
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To: mandaladon

Keynesianism remains vigorous so long as there are politicians and governments.


8 posted on 12/04/2010 4:25:16 PM PST by arthurus (Read Hazlitt's "Economics In One Lesson.")
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To: mandaladon
Are you kidding? As long as Obummer style Socialists exist, this BS will be trotted out. Remember, the Libs are saying the problem with the stimulus was it was not BIG enough. We need to spend more next time. Keynesianism is like a zombie.


9 posted on 12/04/2010 4:29:28 PM PST by Lazlo in PA (Now living in a newly minted Red State.)
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To: mandaladon
How dare IBD discredit economist Paul Krugman the Nobel Prize winning NY Times keyboard jockey / S
10 posted on 12/04/2010 4:33:57 PM PST by Popman (Obama. First Marxist to turn a five year Marxist plan into a 4 year administration.)
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To: mandaladon

Dream on. This admin’s policy isn’t Keynesian because the outcome hoped for isn’t to restore a healthy economy. That’s just what people looking for a rational explanation are hoping it is.

The naked truth: BO, his puppet masters and the droves of Marxist minions are bent on destroying the United States of America the fastest way they know how.


11 posted on 12/04/2010 4:36:09 PM PST by WorkingClassFilth
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To: mandaladon

In the long run, we’re all dead.


12 posted on 12/04/2010 4:36:35 PM PST by dfwgator (Congratulations to Josh Hamilton - AL MVP)
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To: the invisib1e hand
it was dead before it was alive. kinda like obama’s presidency.

It is dead. But the keep building a house for a ghost.

13 posted on 12/04/2010 4:41:22 PM PST by VRW Conspirator (The greatest deterrent to liberalism is sunlight.)
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To: mandaladon

“But that doesn’t mean Keynesianism is dead. It may be momentarily discredited, but it has a powerful attraction to politicians. Modern-day Keynesianism allows them to look busy during a crisis and act as though they’re, well, acting. It also allows politicians to get their hands on a lot of cash — and that allows them to share the spoils with key backers and constituents. It’s practically built for pork. Perhaps even more seductively, it gives politicians the illusion of control over the economy, allowing them to pick winners and losers. Unfortunately, that is just an illusion; as Hayek explains in The Road to Serfdom, the economy is too complicated for central controllers to operate it, and those attempts to do so result in economic ruin.

“That was the reason Communism failed, and it’s the reason modern-day Keynesianism fails as well. Putting the resources in the hands of bureaucrats rather than the market stakeholders makes markets less efficient, distorts incentives and outcomes, and inevitably leads to economic failure. “


14 posted on 12/04/2010 4:42:05 PM PST by Bhoy
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To: mandaladon

Now for the last time, Bambi is NOT Keynesian.
He is Hawaiianese.


15 posted on 12/04/2010 4:47:45 PM PST by GnuHere
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To: mandaladon

Heck the Nobel committee gave the prize in economics to a Keynesian fundamentalist a year or two back. Keynesianism was dead for a number of decades before the recent demand driven contraction, but the advocates were there just waiting for another opportunity to bring it back. There is no reason to think that the big government types wont use Keynsianism and the next demand driven contraction to once more seek big increases in government.


16 posted on 12/04/2010 4:50:24 PM PST by JLS (Democrats: People who won't even let you enjoy an unseasonably warm winter day.)
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To: mandaladon

Is Obama A Keynesian?

His fans say Obama is not a Keynesian, he's an American!


17 posted on 12/04/2010 4:53:40 PM PST by Iron Munro (This is our culture; fight for it. This is our flag; pick it up. This is our country; take it back.)
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To: mandaladon

J M Keynes is a zombie still looking to devour economies.


18 posted on 12/04/2010 5:09:47 PM PST by The Great RJ (The Bill of Rights: Another bill members of Congress haven't read.)
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To: mandaladon

Obama doesn’t believe in Keynesianism (if he even knows what that is). The “stimulus” was and did exactly what it was supposed to: funnel massive money (and power) to his cronies, buy votes, and wreck the economy.

Period.


19 posted on 12/04/2010 5:13:03 PM PST by piytar (0's idea of power: the capacity to inflict unlimited pain and suffering on another human being. 1984)
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To: mandaladon
Keynesianism will continue as long as there are statists who want to grow Government.
20 posted on 12/04/2010 5:22:04 PM PST by fortheDeclaration (When the wicked beareth rule, the people mourn (Pr.29:2))
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To: mandaladon

It’s not dead but it’s a carrier of death.


21 posted on 12/04/2010 5:29:59 PM PST by muir_redwoods (Obama. Chauncey Gardiner without the homburg.)
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To: muir_redwoods

I’m a little rusty on Johnny Keynes, but that era was riddled with commies/socialists/fascists, ? The head of the IMF at its creation was a Red, for just one example. Their goal was the destruction of capitalism - that is free markets, private property, human rights, etc.

To be fair, and what nobody ever mentions, ever, is that Keynes theory of deficit spending is predicated only on a balanced budget? The last time that happened if figures can believed, was somewhere around 1954.

Deficit spending is a recipe for the confiscation of wealth. Seems like Keynes theories were twisted at best, into a mechanism to bring ruin.


22 posted on 12/04/2010 5:53:26 PM PST by Freedom4US
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To: mandaladon

Yes.


23 posted on 12/04/2010 7:59:04 PM PST by Uncle Miltie (0bama thought he'd find "common ground" on 0bamaCare because of ROMNEYCARE!)
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To: mandaladon

How did we go from not bailing out Enron to bailing out everybody in only seven years?


24 posted on 12/04/2010 9:14:21 PM PST by conservativeimage.com
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To: mandaladon

Only if people start realizing that Keynesism is more about control/immorality and less about economics.

http://www.modernhistoryproject.org/mhp/ArticleDisplay.php?Article=Bloomsbury&Entity=KeynesJM


25 posted on 12/05/2010 6:35:46 AM PST by wolfcreek (http://www.youtube.com/watch?v=Lsd7DGqVSIc)
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