Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Obama's 'Growth' Will Be Europe's Stagnation
IBD Editorials ^ | May 21, 2012 | Editor

Posted on 05/21/2012 5:16:48 PM PDT by Kaslin

Growth: At the weekend meeting of G-8 leaders, President Obama exhorted his colleagues in Europe, and especially Germany, to focus on "growth," not austerity. Is this a joke?

ngjdThe president seems confused. He thinks more government spending, not less, translates to more economic growth.

It's easy to understand why. Conventionally educated in Keynesian economics, the president, like others on the left, actually believes in things like the government "multiplier" — where a dollar spent by government yields more than a dollar in economic activity.

It doesn't, of course — as economists from Robert Barro at Harvard to John Taylor at Stanford have shown. Yet, at the G-8 meeting, that's exactly what Obama told German Chancellor Angela Merkel and the rest of the EU to do: boost growth by spending more.

Merkel must have been perplexed. Germany's economy is growing, in large part because it ignored the earlier bad advice of those well-meaning economic incompetents who advised it to spend its way to prosperity.

Since the last quarter of 2009, Germany's average annualized GDP growth has been 2.8%; the U.S. rate, even though it hasn't had to deal with a second financial crisis as Germany has, has been just 2.4%.

As Germany grows, most of the rest of the EU — especially heavily indebted, big-spending Greece, Spain, and France — are sliding back into recession.

Maybe Obama should ask Merkel for advice. But sadly, Obama and the economic illiterates who back him in the media actually believe that more government spending translates into more economic growth, while "austerity" — that is, living within your means — kills it .

(Excerpt) Read more at news.investors.com ...


TOPICS: Editorial
KEYWORDS:

1 posted on 05/21/2012 5:16:50 PM PDT by Kaslin
[ Post Reply | Private Reply | View Replies]

To: Kaslin
"...where a dollar spent by government yields more than a dollar in economic activity. It doesn't, of course — as economists from Robert Barro at Harvard to John Taylor at Stanford have shown. "

That's a real problem that will be tough to fix.

2 posted on 05/21/2012 5:22:07 PM PDT by Paladin2
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

I have yet to see that Obama took even ECON 101 at any time in his storied academic career.


3 posted on 05/21/2012 5:24:12 PM PDT by Seeking the truth
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin
Conventionally educated in Keynesian economics...
Really? Educated? I don't think so.
4 posted on 05/21/2012 5:24:48 PM PDT by samtheman
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

At G8, President Obama Suggests Germany Stop Austerity and Start Spending (ECB Likely to Start Quantitative Easing)

http://confoundedinterest.wordpress.com/2012/05/21/obama-wants-germany-to-stop-austerity-st-curse-of-being-fiscally-well-managed-and-act-reckless-like-the-u-s-and-greece/


5 posted on 05/21/2012 5:27:25 PM PDT by whitedog57
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

This guy has great charts showing why Obama is focused on Germany. And destroying it.

At G8, President Obama Suggests Germany Stop Austerity and Start Spending (ECB Likely to Start Quantitative Easing)

http://confoundedinterest.wordpress.com/2012/05/21/obama-wants-germany-to-stop-austerity-st-curse-of-being-fiscally-well-managed-and-act-reckless-like-the-u-s-and-greece/


6 posted on 05/21/2012 5:28:08 PM PDT by whitedog57
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

Remember that O’Zero comes from the party that characterizes ‘slowing the growth of spending’ as “Draconian cuts intended to starve minority children!!” - so of course, to him, “stagnation” will be characterized as “growth”...


7 posted on 05/21/2012 5:32:57 PM PDT by Uncle Ike (Rope is cheap, and there are lots of trees...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paladin2

That’s a real problem that will be tough to fix.

That is in the nature of a self correcting problem.
That doesn’t mean it won’t be UGLY when it does.


8 posted on 05/21/2012 5:37:16 PM PDT by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: tet68

In the short term it’ll be easy to fix the blame.


9 posted on 05/21/2012 5:41:21 PM PDT by Paladin2
[ Post Reply | Private Reply | To 8 | View Replies]

To: Paladin2

Lets see...

Take $1.00 out of productive sectors of the economy

Spend 70 cents on bureaucracy...

Put 30 cents back into unproductive parts of the economy

and call it “stimulus”


10 posted on 05/21/2012 5:44:04 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Seeking the truth

He took Socialism 101 instead, which was taking things over and having a monopoly over all the PR, languages, moneys and thus be able to twist truth and economic facts once empowered.

The French have run the language business for a while at the UN, and Obama and Hollande would pick from the same PR pool.

This is not a G8 economic summit, it is a whoring of politicians trying to sell garbage and run for office.


11 posted on 05/21/2012 5:51:02 PM PDT by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
[ Post Reply | Private Reply | To 3 | View Replies]




Click the Pups

Calling for Donors!

Please Donate Monthly
Sponsors will bark up $10 for each new monthly sign-up
FReeper RonC will give FR $25 for each new Dollar-A-Day Club member!

12 posted on 05/21/2012 6:15:32 PM PDT by TheOldLady
[ Post Reply | Private Reply | View Replies]

To: GeronL

And a chunk of that 30 cents gets kicked back as campaign contributions to Emperor Zero.


13 posted on 05/21/2012 7:11:08 PM PDT by justa-hairyape
[ Post Reply | Private Reply | To 10 | View Replies]

To: GeronL

... then subtract 20 cents for all the leeches that feed off the earmarks ...

... and voila! Obama’s blown $3 Trillion, and the unemployment rate is still virtually the same (8%) as when he took office 3 1/2 years ago.

Gee, the economy is so unfair, it won’t give Obama an affirmative-action free ride like all his teachers at Columbia and Harvard did. This is probably the first time in Obama’s life that he’s actually accountable for his actions!


14 posted on 05/21/2012 7:17:41 PM PDT by canuck_conservative
[ Post Reply | Private Reply | To 10 | View Replies]

To: Kaslin

I’m not sure everyone in the media BELIEVES in spending our way to prosperity. But they WORSHIP obama and will support anything he wants to do.

Same goes for those who will vote for him. Most of the voters have no idea what he says on a daily basis. They simply love him.


15 posted on 05/21/2012 8:28:33 PM PDT by Terry Mross ("It happened. And we let it happen." Peter Griffin - FAMILY GUY)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

This gets to the Point I have Been telling My wife for 3 years. Obama ran for President by Bashing Bush For Driving us into a Ditch,it was Unpatriotic,irresponsible,enslaving our children to the Chinese in Debt. Then The Jerk Goes out and Outspends Bush in 3 and a Half Years and no one says a Peep. Now he goes to Europe and tells them to Spend Spend Spend! They are already BROKE.What the Hell is wrong People!


16 posted on 05/22/2012 3:36:07 AM PDT by ballplayer
[ Post Reply | Private Reply | To 1 | View Replies]

To: whitedog57
This guy has great charts showing why Obama is focused on Germany. And destroying it. At G8, President Obama Suggests Germany Stop Austerity and Start Spending (ECB Likely to Start Quantitative Easing)

Yep - typical leftist plan to "elevate" us and others by destroying those above. Typical 'raise the poor by bringing the rich to their knees. Eventually, all will be destitute, but equally so - "fairness" will prevail.

17 posted on 05/22/2012 4:47:24 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
[ Post Reply | Private Reply | To 6 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson