Skip to comments.Obama's Economic Fictions Are Unraveling (More Keynesian economics for dummies!)
Posted on 06/16/2012 12:20:14 PM PDT by neverdem
President Obama's statement that "the private sector is doing fine" is not just gaffe. It is a lesson in bad economics and an explanation of the failure of Obamanomics.
The specific premise behind that statement is that the cause of persistent unemployment is not the weakness of the private sector but rather a decrease in employment by state and local governments.
The Heritage Foundation provides the graph that refutes this on a purely factual level. It shows employment levels in the private sector versus state, local, and federal government since...
Aren't we all watching this happen in Europe right now? In countries like Greece and Italy they implemented the policies of our sage American economists to the letter. Following the advice of Mr. Krugman, they propped up their economies by maintaining a "normal" rate of growth of government employment and the welfare state. Following the advice of Mr. Cohn, they paid for it all by simply writing checks. And following the advice of Mr. Bivens, they didn't worry about their ever-increasing debt because there was no upward pressure on interest rates. Until, suddenly, there was.
Years ago, the great free-market economist Henry Hazlitt wrote a book called Economics in One Lesson. The "one lesson" is: "The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups." If Krugman and his ilk followed this rule, they might ask such questions as: why can't we continue to increase the government payroll indefinitely? Why can't we simply go on writing checks? Why can't we assume that interest rates will flop around near zero forever?
If they asked, they might find a specific answer.
(Excerpt) Read more at realclearpolitics.com ...
There’s really no way to argue with Keynesians because they can always say we should’ve spent more. Just like Marxists can always say the proletarian revolt is just around the corner, trust me, and millenarians can always say Jesus is coming down on a white horse to slay the devil tomorrow.
Einstein had it right -— about doing the same thing over and over and expecting a different result. The definition of insanity, if I remember correctly.
But at the same time, this disastrous situation has other ingredients mixed with it. Greed, power-madness, ego, megalomania, and HATE!
The Obama dolts are logically impaired and live in perpetual delusion. They will go to their graves believing that the real culprits of Obama's Keynesian-inspired economic ravages are EVIL Republicans and Fox News.
Remember that in Obama’s world, the private sector is irredeemably evil and must be destroyed, even by violent means if necessary, and money and prosperity come from a bottomless well of governmental benevolence. It’s what he believes.
The Kenyan wants 35 bil to buy more public sector voters. Simple as that.