Posted on 11/30/2011 12:42:03 AM PST by neverdem
Left-wing ideologues like Paul Krugman posing as economists believe that the reason why the Obama stimulus dumped upon us didn't work is because it wasn't big enough. Krugman points to statistics that show a clear relationship between stimulus spending and corollary increases in economic activity in Europe and the U.S. His statistics also show decreases in economic activity when spending stops. He stops there, arrogantly believing that he pointed out an obvious truth that all should understand and approve of, and the U.S. government should, therefore, "invest" huge sums of borrowed money into the economy. (This is not atypical short-sightedness for Krugman. Remember his piece bloviating about how Wisconsin's unionized teachers were superior to Texas' non-union teachers? Iowahawk destroyed Krugman's case with a little bit of research and basic logic. For those of you who are not familiar with this fun piece of journalism, read it here.)
--snip--
True, Keynes believed in government spending when the economy is slow, but only when paired with saving and paying down debt when the economy is moving along well. From what I have read, it appears that Mr. Keynes would have shuddered at the magnitude of the current U.S. debt, and he would not have looked favorably on spending at this time. But regardless of what Mr. Keynes would have thought, these times are different from Keynes's world of the 1930s, when our economic machine was blessed with a young, hungry work force that expected nothing from government and gave everything in return. Additionally, there was a world awaiting American products and ingenuity. Not so today. We aren't competitive in areas we used to dominate. To be sure, we can become more competitive and take strides to correct our course, and we should. But to spend more without correcting our problems is...
(Excerpt) Read more at americanthinker.com ...
All we have done is stimulate the economies of the countries like China that we have exported our manufacturing base to.
The fact is workers in China built most of the wind turbines and solar systems for our new "green economy" so very few American jobs were created with all of the stimulus spending to create the Utopian "green economy" and most of the green jobs that were created were created abroad.
This president has removed the engine of our economy. Siphoned fuel from the tank to jump start it, all the while pouring sand into the engine and singing the same old song blaming (Wall street, the banks, industry etc.) for the engines poor performance, and Bush for the economy not moving.
True! But the Dems and Pubs in power will not agree to this.
Both are invested, in different ways, to the path we are currently on.
No, the only way to "jump start" America is massive (permanent) layoffs in the House and Senate.
DO READ THE IOWAHAWK PIECE linked in the excerpt. Krugman eviscerated!
I don't think he's removed the engine, he's bolted on a governor that requires more power to run than the engine can produce.
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