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How Long Will It Take Keynes to Die? (Slams NYT)
Reason via RCP ^ | August 17, 2011 | Tim Cavanaugh

Posted on 08/21/2011 7:48:05 PM PDT by MontaniSemperLiberi

It’s been many years since I’ve read The New York Times. Like most readers, I got discouraged by the shrinking page size, the self-confident erroneousness that becomes apparent whenever America's newspaper of record covers a topic I’m familiar with, and the lack of a comics page. Sure there are occasions when you can’t avoid it—usually when enough people are complaining about an article or when somebody I know is in the paper—but on a daily basis I follow the golden rule that life is just too short for The New York Times.

So imagine my surprise the other day when, challenged by a third-world Internet connection and enticed by an old-school six-column page width, I picked up a $2.65 copy of the International Herald Tribune, which partially reprints The New York Times, only to discover that the paper a) no longer bundles that day’s edition of the Beirut Daily Star (my actual purpose in buying it), b) has jettisoned the last memory of its fabled Big Apple namesake by calling itself “The Global Edition of The New York Times” and c) features the kind of groupthink rarely seen outside a French parochial school.

While the rest of hyperconnected, interweb-powered planet Earth has now seen Keynesian economic intervention tested in real time and discredited beyond any intelligent doubt, the Times, I quickly learned, is a walled garden where the ideas of John Maynard Keynes remain not only viable but so evidently true as to require no factual support.

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


TOPICS: Business/Economy; Government
KEYWORDS: economics; economy; enemedia; keynes; keynesian; keynesianism; newyorktimes; nytimes; timcavanaugh
Reason is a Libertarian rag but it's still a good slam with lots of links to other articles. This made it to RCP so some larger audience will read it and follow the links.

Not only is Obama going down in 2012 but the whole stinking philosophy of his sycophants.

1 posted on 08/21/2011 7:48:13 PM PDT by MontaniSemperLiberi
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To: MontaniSemperLiberi

it probably never will die because it’s part of the fdsr-liberal fascism developed

during the early part of the 20th c for the purpose of taking control of world economies.


2 posted on 08/21/2011 7:57:29 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: MontaniSemperLiberi
When will Keynes's ideas be buried? Good question. Remember, there are still large numbers of people who believe in astrology.
3 posted on 08/21/2011 7:58:16 PM PDT by JoeFromSidney (New book: RESISTANCE TO TYRANNY. A primer on armed revolt. Available form Amazon.)
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To: ken21

fdr


4 posted on 08/21/2011 8:01:16 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: MontaniSemperLiberi

According to Milton Freidman, Keynes himself warned against government intervention going too far.

http://www.youtube.com/watch?v=M_uAU3r4R2Q


5 posted on 08/21/2011 8:03:57 PM PDT by Huskrrrr
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To: MontaniSemperLiberi
Keynesianism will always work perfectly in Marxist Academia.

6 posted on 08/21/2011 8:06:44 PM PDT by Uri’el-2012 (Psalm 119:174 I long for Your salvation, YHvH, Your law is my delight.)
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To: MontaniSemperLiberi
T be fair to Keynes, he would NOT have encouraged a so-called stimulus like the Obama-Pelosi white-elephant. He knew that it could only work if two condition are met:

1. The money multiplier is above about 2,
2. The money was used to stimulate the private, productive sector of the economy.

Neither of these conditions were met. The multiplier was already below 1.0, and falling, and most of the stimulus was used to save the jobs of non-productive, public employees, instead of stimulating the private sector.

Nevertheless, it is clear that Keynesian stimulation is of limited value. The fact that the money multiplier has to be 2 or above makes it useless in situations where it would be most needed.

7 posted on 08/21/2011 8:07:18 PM PDT by expatpat
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To: MontaniSemperLiberi

Don’t we wish their “stinking philosophy” would die once and for all. But a majority of the population still believes, and will always believe, in the fairy-tale promise of a beneficent and government, a “multiplier” that can create wealth by spending money, sticking it to “the rich” for perceived and a “just society” achieved by taking from some to give to others. This is a failure of our educational system from top to bottom.


8 posted on 08/21/2011 8:09:17 PM PDT by ProtectOurFreedom
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To: ken21

You’re right I think. To give up on Keynes is to give up on the coercive side of progressivism leaving only the authoritative side. Without Keynesian government as a philosophy there is only Stalinism.


9 posted on 08/21/2011 8:09:20 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
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To: expatpat

“The money multiplier is above about 2...”

Interesting. Do you have a quote from him on that? It is a wonderful slam of Krugmanism.


10 posted on 08/21/2011 8:12:43 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
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To: JoeFromSidney
Remember, there are still large numbers of people who believe in astrology and a flat earth and the tooth fairy.
11 posted on 08/21/2011 8:14:06 PM PDT by reg45
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Comment #12 Removed by Moderator

To: MontaniSemperLiberi

In the long run, he’s already dead.


13 posted on 08/21/2011 8:15:46 PM PDT by RichInOC (No! BAD Rich! (What'd I say?))
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To: MontaniSemperLiberi

As long as Keynes’ “theory” gives a pseudo-scientific fig leaf of justification to the elites for what they are going to use the power of govenment for anyway, he will never die.


14 posted on 08/21/2011 8:18:48 PM PDT by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: RichInOC

Nice.


15 posted on 08/21/2011 8:19:17 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
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To: MontaniSemperLiberi

I was hoping this piece by Tim Cavanaugh would give his insight into why Keynesian economics is a failed system. It did not. We need to educate more people why this discredited system is poison to any economy. My advice is for my fellow Freepers to go here:

http://www.keynesatharvard.org/book/KeynesatHarvard-ch04.html


16 posted on 08/21/2011 8:19:17 PM PDT by jonrick46 (2012 can't come soon enough.)
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To: MontaniSemperLiberi
Hehehe .... the last paragraph --->

At this rate the borough of Milton Keynes could be renamed Milton Friedman by the end of the year. To ignore that story is a serious dereliction by a publication that, with its tiny and nearly-square pages, has already failed in the most serious duty of any newspaper: providing material to make paper boats.

17 posted on 08/21/2011 8:32:53 PM PDT by parisa
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To: parisa
This pretty much sums it up:

http://www.youtube.com/watch?v=d0nERTFo-Sk

18 posted on 08/21/2011 8:54:08 PM PDT by The Duke
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To: The Duke; All

Part Two: http://www.youtube.com/watch?v=GTQnarzmTOc&feature=relmfu


19 posted on 08/21/2011 11:23:32 PM PDT by Minus_The_Bear
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To: MontaniSemperLiberi
Even John Maynard Keynes was against raising taxes in a recession. I wonder if Obama is aware of this?
20 posted on 08/22/2011 1:18:26 AM PDT by truthguy (Good intentions are not enough.)
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To: MontaniSemperLiberi

bump


21 posted on 08/22/2011 1:57:15 AM PDT by WashingtonSource
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To: RichInOC
In the long run, he’s already dead.

Bravo, brilliantly done!

22 posted on 08/22/2011 5:50:53 AM PDT by TheSarce (Reject Socialism. Champion Liberty.)
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To: truthguy
Not only against raising taxes, but also in favor of reducing taxes, as part of the whole package attacking recession.
23 posted on 08/22/2011 9:34:39 AM PDT by expatpat
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To: parisa

Yes, that is brilliant.


24 posted on 08/22/2011 9:35:40 AM PDT by expatpat
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To: MontaniSemperLiberi

I’ve been looking, and trying to remember, but haven’t located the reference so far.


25 posted on 08/22/2011 9:37:25 AM PDT by expatpat
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To: MontaniSemperLiberi

The RinoCracy is too purblind....but the way out is here..

Warren Harding figured it out in 1920...

Congress and the Executive Branch have lots to do.

So far they’re not doin’ it right..

Its been done before..

Harding cut the government’s budget nearly in half between 1920 and 1922. The rest of Harding’s approach was equally laissez-faire. Tax rates were slashed for all income groups. The national debt was reduced by one-third. The Federal Reserve’s activity, moreover, was hardly noticeable. As one economic historian puts it, “Despite the severity of the contraction, the Fed did not move to use its powers to turn the money supply around and fight the contraction.” 2 By the late summer of 1921, signs of recovery were already visible. The following year, unemployment was back down to 6.7 percent and was only 2.4 percent by 1923.

http://www.firstprinciplesjournal.com/articles.aspx?article=1319&loc=r

BTW..ole Warren ALSO fixed immigration...

Mr. Harding signed into law the Emergency Quota Act[3] which sought to control immigration following World War I and preserve the distinctive American culture by ensuring the majority of immigrants came from the historically compatible cultures of Northern Europe. This law aimed to bring wages of hard working Americans under control by limiting immigration to 3% of the 1910 census. It was followed on by a similar act in 1924, after Mr. Harding’s death.[4]

A Warren Harding prescription...if filled ...would ignite the afterburners on the US job machine and the economy. However DC would have to yield on a tremendous amount of power. Our job as We the People...is to persuade them of the “utility” ..shall we say..of doing so. In all probability the same minds that made the mess...aren’t capable of the solution however.

BTW any takers that ‘Bammy couldn’t even tell you that Warren Harding was one of his predecessors in office?

Even more telling about what our betters in the RinoCracy think of a Constitutional President..

http://www.usnews.com/listings/worst-presidents/warren-harding


26 posted on 08/22/2011 9:38:57 AM PDT by mo
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To: Steely Tom

That’s the point right there -

Keynesianism is just a facade over the advancement of communism, the growing of State power.


27 posted on 08/22/2011 9:41:43 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: MontaniSemperLiberi
Here's something related, from http://inflationdata.com/inflation/Deflation_Articles/Why_Deflation_Is_Possible.asp:

what happens if one (or all) of the banks decides it isn’t prudent to loan out the money and they prefer to increase their reserves instead? In that case, the money multiplier falls. In the following chart we can see that the M1 money multiplier has actually fallen steadily from just under 3x in 1990 to 1.5x in 2008 (in contrast to the velocity of money which rose). But in 2008 the money multiplier plummeted to under 1x. What does that mean? Any kid can tell you, if you multiply by 1 you get the same number, no multiplication has happened.

But if you multiply by less than one, you end up with less than you started with! In other words, every dollar the government is pumping into the economy is ending up in the banks and going nowhere! It is not increasing the money supply, it is not multiplying, it is not creating inflation. It is going to boost the balance sheets of the banks.

In 2002, at about the same time as Bernanke was making his famous helicopter speech, Robert Prechter published a book entitled “Conquer the Crash” in which he made this exact argument. That when the tide turns there is nothing the government can do. The combined forces of the velocity of money and the money multiplier are stronger than the government’s printing presses.

28 posted on 08/22/2011 9:54:50 AM PDT by expatpat
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To: ken21

Keynesian economics is the engine which has powered crony-federalism for the last 80 years.

It provides liberals the tools of plunder, political power and personal enrichment. They will never willingly reliquish it.


29 posted on 08/22/2011 9:57:16 AM PDT by Justa
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To: MrB
That’s the point right there -

Keynesianism is just a facade over the advancement of communism, the growing of State power.

I watched the wonderful video of Milton Friedman linked in post #5 (above) and saw, to my amazement, that he made virtually the exact same statement that I made, that the theories of Keynes have been used to justify what governments want to do anyway, which is grow their power and suck in more money.

You have to take my word for it that I never watched Free to Choose before. I remember when it came out, back in the '80's; a few friends told me I should watch it, that I'd love it. I did watch a few minutes of one of the episodes, but I couldn't take it for long. Why?

  1. I agreed with everything in it
  2. I already knew a lot of it, having read pretty much everything Ayn Rand ever wrote when I was in college
  3. It was hard to take, because it is so right and yet I knew, in my heart, that it would never be adopted; for some reason this made it painful to watch
  4. Economics, even when explained by a great man like Milton Friedman, bores me to tears

Dr. Friedman asks us to believe that Keynes was against the uses to which his theory was put. Due to my great admiration for him, I will take Dr. Friedman's statement at face value; he, apparantly, knew Keynes well enough to be able to make such a statement, and I'm sure he is an honest man. However, I find this just a little hard to take. It's like being told that General Mikhail Timofeyevich Kalashnikov was really bugged by all the nasty things that were done with the rifle that bears his initials.

30 posted on 08/22/2011 2:22:28 PM PDT by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: mo

I’m in complete agreement. Government engineering of the economy, Republican and Democrat, is what’s holding us back. They need to stop trying to help us and get their own house in order.


31 posted on 08/22/2011 3:17:53 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
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To: Steely Tom

The econ guy that ISN’T boring to read is Thomas Sowell.
The only criticism I would have of his works is that he is repetitive. But sometimes that is needed to drive a point home.


32 posted on 08/23/2011 5:20:30 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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