One wonders how many times this Keynesian experiment has to fail before they stop trying. It didn’t work during the Great Depression, it hasn’t worked during Japan’s lost two decades, and it hasn’t worked now in the Little Depression. The theory is bunk.
This particular episode may become known as the “Kenyan Growth Discount” to future historians...
A totally awesome video:
Fight of the Century: Keynes vs. Hayek Round Two
http://econstories.tv/2011/04/28/fight-of-the-century-music-video/
Remember, it’s not only the failure of Obamanomics, but it’s the failure of Bushonomics. Bush was also a Keynesian who abandoned Reagan’s supply side economics. If you had carefully read the WSJ article you would have seen this:
“Most striking is that this weak growth follows everything that the Keynesian playbook said politicians should throw at the economy. First came $168 billion in one-time tax rebates in February 2008 under George W. Bush, then $814 billion more in spending spread over 2009-2010, cash for clunkers, the $8,000 home buyer tax credit, Hamp to prevent home foreclosures, the Detroit auto bailouts, billions for green jobs, a payroll tax cut for 2011, and of course near-zero interest rates for 28 months buttressed by quantitative easing I and II. We’re probably forgetting something.”
Before 2008, Bush and his big-government Republicans were borrowing heavily while going on a massive government spending spree. Have you forgotten? How the heck do you think Bush tripled the deficit and lost Congress in 2006?