Obama's stimulus had no more to do with growing the economy than it had to do is shovel ready jobs, it was a pork ladle to shore up the Democrat party.
The next time the occasion arises, more pork will be ladled and for the same reason.
Posted on 12/23/2014 12:24:46 AM PST by iowamark
This year the tide changed in the economy. Growth seems finally to be returning. The tide also changed in economic ideas. The brief resurgence of traditional Keynesian ideas is washing away from the world of economic policy.
No government is remotely likely to spend trillions of dollars or euros in the name of “stimulus,” financed by blowout borrowing. The euro is intact: Even the Greeks and Italians, after six years of advice that their problems can be solved with one more devaluation and inflation, are sticking with the euro and addressing—however slowly—structural “supply” problems instead.
U.K. Chancellor of the Exchequer George Osborne wrote in these pages Dec. 14 that Keynesians wanting more spending and more borrowing “were wrong in the recovery, and they are wrong now.” The land of John Maynard Keynes and Adam Smith is going with Smith.
Why? In part, because even in economics, you can’t be wrong too many times in a row.
Keynesians told us that once interest rates got stuck at or near zero, economies would fall into a deflationary spiral. Deflation would lower demand, causing more deflation, and so on.
It never happened...
Our first big stimulus fell flat, leaving Keynesians to argue that the recession would have been worse otherwise. George Washington’s doctors probably. argued that if they hadn’t bled him, he would have died faster.
With the 2013 sequester, Keynesians warned that reduced spending and the end of 99-week unemployment benefits would drive the economy back to recession. Instead, unemployment came down faster than expected, and growth returned, albeit modestly. The story is similar in the U.K...
(Excerpt) Read more at wsj.com ...
Kidding right?
Obama's stimulus had no more to do with growing the economy than it had to do is shovel ready jobs, it was a pork ladle to shore up the Democrat party.
The next time the occasion arises, more pork will be ladled and for the same reason.
There is no nation in history that has spent its way out of a failed economy. Just ask the USSR.
Obama's massive stimulus was largely used to fund existing government jobs (remember the jobs saved malarkey) and did not create any new consumer spending thus no GDP growth. The massive borrowing used to fund the stimulus crowded out actual investment in the economy. Imagine if the Chinese had invested the billions they spent simply buying our debt into investing in actual businesses in the US economy. The Keynes zombie needs to have a stake in the heart.
You misspelled the word Kenyanesian,
Growth seems finally to be returning.
With all due respect to the nice professor, his brilliant observation is true only if you believe in concocted and contorted economic measurements, manipulated markets, massive amounts of printed money, and the glorious benefits incredible waste and organized theft inherent with central planning.
This article is yet another example of all is well propaganda spewed out by the main stream media. It is similar depth of analysis and accuracy to Andrew Mellon's famous observation in September 1929 that, "There is no cause to worry. The high tide of prosperity will continue." You may recall that one month later, the stock market crashed and the government responded with the same Keynesian garbage that launched the decade long Great Depression ... the same socialist garbage that is wreaking havoc today.
Synonymous
the recession was over in the second quarter of 2009, before the first flaccid stimulus dollar ever hit the economy.
“Growth seems finally to be returning.”
Huh? You could have fooled me....
The US uses Kenyanesian Economics (which fail too).
The economy is growing. Just not quickly enough. Set your blinders aside.
There aren’t trillions of dollars available for borrowing. So, where do the “dollars” come from? They’re created out of thin air at the Federal Reserve. Each new dollar steals value from all other old dollars. The Fed then gives the new dollars to their political favorites, who generally like the system, because they get free money. This creates bubbles in the favored industries, in the current case, the Stock Market. Why have Stocks gone up so far and fast over the past year? Have the American Companies been creating wealth to such an extent? Nope.
Where did you get the silly idea that the Fed gives free money?
Have you heard of QE? Quantitative easing? The Fed bought bonds yielding 2%-4%, in exchange for cash.
So the political favorites, like JPMorgan, held fewer assets yielding 2%-4%, and more excess reserves yielding 0.25%.
Have the American Companies been creating wealth to such an extent?
Yes. American companies have been making tons of money.
Not surprisingly, it doesn't turn out well for the non-connected dupes.
They can create it for free, they don't give it to anyone.
That they then charge low, low, low, crazy low rates to Banks for the free money
Banks aren't borrowing cheap money from the Fed. In fact, banks are lending trillions to the Fed right now.
"The Fed bought bonds yielding 2%-4%, in exchange for cash."
Where did the Fed get the money to buy bonds?
And you wrote:
"So the political favorites, like JPMorgan, held fewer assets yielding 2%-4%, and more excess reserves yielding 0.25%."
And you also wrote:
"Banks aren't borrowing cheap money from the Fed. In fact, banks are lending trillions to the Fed right now. "
JPMorgan is or is not a bank. Keep it Simple Simple.
And outside of the oil industry, how are American Companies making tons of money?
Central banks, like the Fed, can create money out of thin air.
JPMorgan is or is not a bank.
Is a bank.
And outside of the oil industry, how are American Companies making tons of money?
By selling their products for more than they cost to produce.
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