Skip to comments.They're All Detroit Democrats Now
Posted on 03/03/2011 11:11:50 AM PST by Mozilla
House Republicans have fulfilled their campaign pledge to cut $100 billion in spending in the first year, passing a continuing resolution (CR) on February 19 cutting that much for this year from President Obama's 2011 budget, which was exactly their pledge. That involves a $61 billion cut for the rest of this year from the baseline of the CR that is now funding the government through March 4.
But the liberal Democrats are stuck in that 1930s-1970s thinking, and that is why as soon as they were back in power, the Obama Administration went right back to that with its trillion dollar stimulus bill and Obamanomics. That was supposed to keep unemployment below 8%, with total employment by the end of 2010 projected at 137.6 million jobs as a result. In reality, by the end of 2010, we were 7.4 million jobs short of that deluded expectation, still another failure of Keynesian economics proving that thinking yet again disastrously wrong.
In today's modern world, that 1930s-1970s Keynesian thinking can only be attributed to a poor education. What increases economic growth, jobs and prosperity is not government spending but increased production, which comes from increased incentives for production. That means lower tax rates and regulatory costs on production. That was the new, more modern, supply-side economics that President Reagan brought to Washington, resulting in a 25-year economic boom without inflation. The rest of the world watched and learned from Reaganomics, which is why countries like China, India, and Brazil have been growing steadily. America is starting to fall behind now because the Democrats are taking us back to the 1930s-1970s era, with their Rip Van Winkle economics pretending that everything since 1980 except the financial crisis of 2008 never happened.
(Excerpt) Read more at spectator.org ...
Keynes was a Fabian Socialist just like most of those involved in the “New Deal”. Lenin quoted him and Hitler followed his advice.
“Exploiting the political naivete of Americans both Walter Lippmann and Felix Frankfurter in 1919 served as Fabian socialist midwives in the birth of Keynesianism in this country. In that year Frankfurter brought over the manuscript of Keynes Economic Consequences of the Peace from England to be published here. In the 1930s Lippmann and Frankfurter again expedited Keynes writings.
In 1933 Frankfurter was ensconced as a lecturer in Oxford University. Fellow Fabian socialist Arthur Schlesinger, Jr. reports that, Later in the Autumn Keynes had talks with Frankfurter, who was then at Oxford; and in December Frankfurter forwarded to Roosevelt an advance copy of an open letter to the President scheduled for publication in the New York Times at the end of the year.(24) Thus the New Deal coterie of Fabians arranged a preplanned spontaneous open letter that was made to appear as an expression from an independently minded English economist. In the meantime F.D.R. had the copy in his hand well in advance of the N.Y. Times publication date. THE TIMES WAS PRIVY to this unprincipled scheme to fool the American people and has been in the forefront selling Fabian socialism, writ Keynesian ever since.”...
Keynesian Economics is like trying to break the Second Law of Thermodynamics, it just ain’t possible.
You cannot get more energy out of a system than you put into that system. You cannot run a car’s engine on “free energy” from hydrogen generated by the car’s alternator which is turned by the gasoline engine. There are losses in the system from friction and conversion.
The economy cannot be “stimulated” by government taking money (economic energy) from people and spending it on infrastructure or any type of program, period. There is no “net gain” of money, only losses, just as in the car engine scenario..............
Or one of Newton's Laws: "Spending in motion tends to stay in motion." Keynesian economics calls for reductions in government spending during good times, and no democrat has ever cited that part of the "Keynesian Agreement."