Skip to comments.MSNBC HARDBALL 8/4/11:“The stimulus experience was a big setback for Keynesian economic theory”
Posted on 08/07/2011 7:39:54 PM PDT by sickoflibs
PLAYING CLIP OF RUSH LIMBAUGH, RADIO TALK SHOW HOST: John Maynard Keynes. If you want to know what Keynesian economics is, you`re living it, Barack Obama, massive government spending, massive debt, massive redistribution of wealth, the lie that government spending, deficit spending can propel economic growth.
They had no intention of saving capitalism. They wanted to destroy it and replace it with socialism or Marxism or fascism or whatever you want to call it.
(END VIDEO CLIP)
I think that is the heart of the Tea Party, Michael, this fear of government massive spending, hemorrhaging, hemorrhaging.
MATTHEWS: That stimulus program of about $800 billion to $900 billion dollars was a waste.
MATTHEWS: It didn`t bring the economy back. And they have got a good argument with that, because when you have a 9-plus percent unemployment rate, how can you claim you turned the economy around? In simple Crayon- level thinking, it works, doesn`t it, the Tea Party argument?
CROWLEY: Sure. Yes. I mean, the experience of the stimulus was a big setback for Keynesian economic theory, because it`s hard to explain to people that it might have really prevented things from getting a lot of worse. And so the Rush Limbaughs of the world point to the unemployment now and say that the thing was a complete waste that didn`t work.
MSNBC HARDBALL for 8/4/11 Transcript(LexisNexis)
Not everyone learned the lesson. Couldnt find a transcript for this same night Maddow show but I did find the clip on youtube.
At about 11:56 start at 11:00 or earlier to hear more of this theory and see if you can follow his math.
Guest Robert Frank Cornell University Economics professor :
The markets are happy to loan us the money. As Ezra said they are eager to loan us more money at very low interest rates . The cost of debt compared to the cost of unemployment is incredibly low. A trillion dollar deficit costs us $25B per year to pay the interest on that. If we have an extra 10M people unemployed thats $250M lost forever each year so its a 10 to 1 trade-off . We are focusing on deficit reduction when we should be focusing on job creation. Focusing on the deficit by cutting spending, thats going to make the deficit bigger. What we are doing now is unimaginably stupid
The Rachel Maddow Show (08-04-11) youtube clip (see 11:44)
Over at Maddow-land "Everyone knows ..." whatever Maddow is selling that night must be right, it's always 'so obvious'. Check out the 10 to 1 math.
It was a big setback for THE KENYAN’S economic theory as well.
Global warming theory?
Religion of peace theory?
Same bull Obama.
Massive fail ... As usual.
“They had no intention of saving capitalism. They wanted to destroy it and replace it with socialism or Marxism or fascism or whatever you want to call it.”
Let none of us forget that GWB said we must destroy the free market in order to save it.
So he and his republican New Worlds Order kool-aid drinkers are on board too.
Ironically, although Keynesian economic theory has always been known to be a fraud, the failure of the “stimulus” package doesn’t really prove the point because the stimulus package was never anything more than a political slush fund for bailing out failed union pension funds and keeping Democrat municipal governments afloat. Very little of the $800 billion actually went to anythiny normally associated with “stimulus”. It was mostly used just to pay bills.
And so now the Keynesians have to either admit that they and their theories are abject failures or nod that yes, the stimulus package was a massive, brazen theft by their Democrat party on behalf of political special interests. What to do, oh, what to do...
EXCELLENT post. Thank you.
We are all Kenyans now/s;)
Silly boy, you are actually listening to what they are saying, and understanding them, much to their dismay.
The true intent of their commentary is aimed only at themselves so they can land talking head jobs at low rated subsidiaries of soros.inc.
Logic, mathematical reality, and reason do not apply in that world.
Keynesian economics should have died in the late 1970s with stagflation...something Keynesian theory said could not happen. J M Keynes is like a zombie who keeps coming back from the dead looking for economies to devour.
Do you have a link to that quote where he said that, to destroy the market to save it?
Keynes theory is based upon expenditure by govt, not necessarily where it goes. The money gets spent regardless of the "first" recipient, makes it's way into the economy and finally into the banks. I would say that indeed Keynesian theory has thus failed, that private sector money has a greater multiplying effect than redistributive money.
Just my take...
They’d rather put their faith in unicorns and pentagrams than to admit the spending must STOP.
It’s time to root out the crooked doctors, hospitals, lobbyists, welfare cheats, disability frauds, EPA over-regulators, ACORN lookalikes, and moronic HHS grants for example.
It’s time to start tax reform.
and it’s time to jettison this administration and the clueless leader.
Media talking heads should be outsourced - that alone would go a long way toward educating the American public about the long hard road we have to walk in order to undo this socialist experiment.
I watched an interesting video interview with F.A. Hayek before he died, and he said that in his opinion, even Keynes would vigorously disagree with how his theories have been interpreted.
For my part, I think Keynesian theory is complete hogwash from the get-go.
Keynes thought that a central government that spent 5% of the GNP, and had an all but invisible regulatory footprint, could spur the economy by temporarily spending 10% of the GNP.
That does not mean that he would have thought a central government spending 22% of the GNP, and regulating everything that moves, would spur the economy by raising spending to 27% of GNP.
I think it is like socialism.
No matter how many times it is tried and failed, someone always thinks it is because it was done wrong.
“THIS time, WE will do it right!” It is a form of mental illness.
Setback? More like an ineluctable repudiation of Keynesian demand-side economics.
I don’t have a link but it is fairly well known, even Rush plays it from time to time......
GWB is nothing but a New World Order big govrnment socialist.....