MSNBC HARDBALL 8/4/11:“The stimulus experience was a big setback for Keynesian economic theory”

nexislexis/youtube(links in body) | 8/4/11 | MSNBC Hardball/Maddow

[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.

CROWLEY: Yes.

MATTHEWS: That stimulus program of about $800 billion to $900 billion dollars was a waste.

CROWLEY: Right.

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. Couldn’t 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 that’s $250M lost forever each year so it’s 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, that’s 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)

[stephenjohnbanker]

ALL of it!!

[sickoflibs]

RE :"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."

Hold on there partner, Obama does it to destroy the country, Bush did it to save the country. I feel much better when I know it's a Republican emptying my 401K and plowing down my house than a Democrat because Republicans are 'one of us', just much more powerful and richer maybe. Well they are good at heart anyway, Elect more RINOs so we get a 'better deal' :)

[stephenjohnbanker]

Thanks

[Do Not Make Fun Of His Ears]

>>We are all Kenyans now<<

LOL

We’ll all be living in huts soon, too.

[R0CK3T]

GREAT!

We took Trillions of dollars and added that to our children’s credit card for a THEORY?!!!

Are these people for F’ng REAL?!!!

So when do get to apply my theories at the taxpayers expense?

F the Liberals in the country ALL to HELL!

I have to pay, you have to pay, and our children and their children have to pay ... for their Theories!!

[Minn]

And here is another good video:

Bilderbergers? Complete with spooky music, evil Jews, kookiness of all kind? You're kidding around, right?

[Eva]

I had to look up what you were saying about Bush claiming that he had to abandon free market principles in order to save the economy. He said it about TARP.

Bush was wrong. It was a big mistake, he listened to the wrong people, but he didn’t have evil intentions. Obama is evil, or as close to it as any mere human can be.

Think about Bush being warned by Moody’s, the real villain in the collapse of the housing market and subprime mortgage debacle, that if Bush didn’t do something and bail out the banks, Moody’s would downgrade the US debt, and the economy would completely collapse.

Think about the fact that Warren Buffet is the largest stake holder in Moody’s.

[Eva]

They wanted to replace it with communism, statist communism.

[listenhillary]

“I’ve abandoned free-market principles to save the free-market system,” Bush told CNN television, saying he had made the decision “to make sure the economy doesn’t collapse.”

---

Where did this explosive growth in deficits come from? How did things get so out of control, and so quickly?

To understand why this is happening, we need to go back to the financial crisis of 2008. During the end of that year and the beginning of 2009, the US private economy imploded. At high speed, it plummeted from an annual level of approximately $9.4 trillion to a level of $8.1 trillion - a loss of $1.3 trillion dollars, or about 14%. In ordinary circumstances a drop this fast and sharp would throw a nation straight into a Depression with a capital “D”.

Yet when one looks at GDP, the total economy only shrank by about $300 billion, or less than a quarter of the fall in the private economy. How could that be? The answer - which lies at the very heart of the current crisis - is that the economy is usually displayed as one number, which is the sum of private and federal spending. When we stick to this one number only and call it reality, it means that a decrease in one side of the economy can be seemingly made to go away by increasing the other side of the economy. As shown in the graph below, what happened was the federal government started spending an extra trillion dollars per year to cover up and smooth over the economic damage from this fundamental, fantastic blow to the private economy, the wealth-producing core of the entire economy.

Snip
The total government (federal, state and local) share of the US economy went from 35% at the end of 2007, to 43% by the end of 2009. Outside of a major war, this is unprecedented growth in government spending, and it occurred almost instantaneously.

Excerpt from
U.S. Faces a Depression-Level Unemployment Crisis
By Daniel R Amerman CFA
http://www.financialsense.com/contributors/daniel-amerman/2011/08/04/us-faces-a-depression-level-unemployment-crisis

[sickoflibs]

RE :”Do you have a link to that quote where he said that, to destroy the market to save it?”

Obviously Bush never used those specific words, But this is probably what they are referring to:
Bush: "I've Abandoned Free Market Principles To Save The Free Market System" (Bush on CNN late 2008 video clip)

[ding_dong_daddy_from_dumas]

MATTHEWS: I think the Tea Party people need to read history.

How do they explain the Harding/Coolidge economy?

[sickoflibs]

RE :”I had to look up what you were saying about Bush claiming that he had to abandon free market principles in order to save the economy. He said it about TARP.”

I was responding to stockpirate’s comment which you are refering to above in your reply, but I did pull up and post the actual quote/video here afterward : #30

[rokkitapps]

I watched that.. (I like watching msnbc because of the laughs) .. they went on to say it was too small and tea partiers were dumb because it was econ 101...

[stephenjohnbanker]

LOL...WHAT A FOOL BUSH WAS.

[stephenjohnbanker]

I HAD TO ABANDON FREE MARKET PRINCIPLES, IN ORDER TO ALLOW STATIST/GLOBALIST RINOS TO TAKE OVER THE GOVERNMENT.

BUSH

[Chgogal]

The stimulus spending that the Obama Idiots Passed grew the public sector NOT the Private sector. You definitely have to have deficit spending during a slow down BUT YOU DO NOT GROW THE PUBLIC SECTOR.

Obama and friends are nothing but damn fools. I am disgusted with the “elites” who seem to be dishonest, socialist/Communist sycophants.

[sickoflibs]

RE :”I had to look up what you were saying about Bush claiming that he had to abandon free market principles in order to save the economy. He said it about TARP. Bush was wrong. It was a big mistake, he listened to the wrong people, but he didn’t have evil intentions. Obama is evil, or as close to it as any mere human can be”

You are right, when Bush tries to take away our free Speech rights with Campaign Finance, or our safe light bulbs with the 2007 Energy Act as well as forced us on ethanol, or he Demands a $1T blank check from congress with no conditions to give to Fannie and Freddy and GM, we should be grateful because he has our best interest at heart and is a Republican. But when an evil Democrat like Obama does the same we should be up in arms and protest. It only makes sense. It is all about intentions.

[SunkenCiv]

Thanks sickoflibs. They don’t really say that though—

[snip] 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. [/snip]

[calcowgirl]

I feel much better when I know it's a Republican emptying my 401K and plowing down my house than a Democrat because Republicans are 'one of us'

LOL (laughing... kind of)

I'm not a Republican anymore for that reason.
Dem and Dem-lite do NOT have my best interest in mind.

[sickoflibs]

RE :” I watched that.. (I like watching msnbc because of the laughs) .. they went on to say it was too small and tea partiers were dumb because it was econ 101... ”

I been following/posting Maddow on this subject since early 2009 because of her arrogance. Flashback this, most of the videos were pulled by I did transcripts at the link.

MSNBCs Rachel Maddow lecturing us on economics, jobs and how stimulus works in Early 2009(posted January 2010)

Example
Maddow:”The stimulus package is just about a done deal. And what we got it’s hoped will result in about 3-4 million new jobs being created…..the bill is 789B dollars with 36% of it tax cuts(ie tax credits) . In other words the president got just about exactly what he asked for, the only thing he didn’t get he said he wanted was republican votes.” {Rachel Maddow} Ms. Information: Stimulus Bill / NAACP(MSNBC, 12 February 2009)