“Socialists of a feather flocking together in a failed last hurrah of keynesian insanity.”
However, I doubt if it is the last hurrah of Lord Keynes’ embarrassingly wrong economic mythology.
Only socialists, enabled as they are by fiscally ignorant voters, are able to consistently ignore the slam-dunk historical record of Marxism as a failed system of government/economics.
Eventually they will die, though. Look at the bright side. And who knows when “eventually” may happen!
Yes, they aren’t even applying their Keynes stimulus theory correctly, Government spending “may” start an economy in a depression;
A REVIEW OF KEYNESIAN THEORY
Keynes explanations of slumps ran something like this: in a normal economy, there is a high level of employment, and everyone is spending their earnings as usual. This means there is a circular flow of money in the economy, as my spending becomes part of your earnings, and your spending becomes part of my earnings. But suppose something happens to shake consumer confidence in the economy. (There are many possible reasons for this, which we’ll cover in a moment.) Worried consumers may then try to weather the coming economic hardship by saving their money. But because my spending is part of your earnings, my decision to hoard money makes things worse for you. And you, responding to your own difficult times, will start hoarding money too, making things even worse for me. So there’s a vicious circle at work here: people hoard money in difficult times, but times become more difficult when people hoard money.
The cure for this, Keynes said, was for the central bank to expand the money supply. By putting more bills in people’s hands, consumer confidence would return, people would spend, and the circular flow of money would be reestablished. Just that simple! Too simple, in fact, for the policy-makers of that time.
If this is the proposed definition and cure for recessions, then what about depressions? Keynes believed that depressions were recessions that had fallen into a “liquidity trap.” A liquidity trap is when people hoard money and refuse to spend no matter how much the government tries to expand the money supply. In these dire circumstances, Keynes believed that the government should do what individuals were not, namely, spend. In his memorable phrase, Keynes called this “priming the pump” of the economy, a final government effort to reestablish the circular flow of money.