Keyword: keynes

Brevity: Headers | « Text »
  • When Enemies Infiltrated the White House ( Harry Dexter White and fellow travelers )

    10/21/2015 10:30:39 AM PDT · by george76 · 21 replies
    FrontPage Magazine ^ | March 10, 2013 | Daniel Greenfield
    How a Soviet mole in FDR's inner circle triggered Pearl Harbor – and its dire relevancy to our conflict today. ... On December 7, 1941, 353 Japanese aircraft delivered a shocking blow .. Nearly seven years later, Harry Dexter White, a senior official in the Roosevelt Administration, appeared to testify before the House Committee on Un-American Activities . Numerous witnesses, including Whittaker Chambers and Elizabeth Bentley, had implicated White in involvement with the Communist Party and the Soviet Union. ... Harry Dexter White, a Harvard PhD and Assistant Treasury Secretary, had played a major role in creating the World Bank...
  • The smartest economist you've never heard of

    10/04/2015 2:13:49 PM PDT · by SunkenCiv · 10 replies
    Washington Post ^ | Saturday, October 3, 2015 | Steven Pearlstein
    When David Lipton, a promising economist, was finishing his graduate work at Harvard in the early 1980s, he faced one of those potentially life-changing choices. He had one job offer from the International Monetary Fund in Washington, the multinational institution that for 70 years has served as a lender of last resort and dispenser of orthodox economic advice to countries that get into financial trouble. There was also an offer of a teaching job from the University of Virginia. Unsure of which path to take, he turned for advice to an intellectually restless and charismatic assistant professor, a Frenchman named...
  • An Autopsy for the Keyenesians

    12/23/2014 12:24:46 AM PST · by iowamark · 19 replies
    Wall Street Journal ^ | 12/21/2014 | John Cochrane
    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...
  • Stupid Is As Krugman Does

    08/18/2014 6:01:50 AM PDT · by Kaslin · 9 replies ^ | August 18, 2014 | Michael Schaus
    Paul Krugman has once again decided to call a few “fools and knaves” who disagree with him by some nasty names. In fact, the Nobel Laureate’s habit of lashing out with vitriolic playground language is pretty well documented; and, quite frankly, it demonstrates an astounding lack of self-awareness when it comes from a Keynesian who has turned being wrong into a career option. But in this rare case, I might actually let his painfully ironic comments slide without condemnation.
  • What Keynes Has Done To Us

    06/17/2014 7:24:49 AM PDT · by Nelson Hultberg · 13 replies
    Americans for a Free Republic ^ | June 15, 2014 | Nelson Hultberg
    The essential economic problem we confront today is that our dominant Keynesian intellectuals have abandoned reality. They do not grasp what they have wrought with the mountainous loads of debt and malinvestment that are overwhelming us. Much of this burden must be liquidated before genuine demand and growth can be restored, which will require radical reform if we are to evoke a genuine cure. To try and solve today’s debt created crisis with more debt (as the Keynesians are presently doing) can only bring on a bigger bust the next time around, which will require still larger “debt injections” to...
  • Keynesianism's Ugly Secret

    04/25/2014 8:27:03 AM PDT · by Nelson Hultberg · 15 replies
    Americans for a Free Republic ^ | April 17, 2014 | Nelson Hultberg
    It is now five years since the crash of 2008. Today's media and much of our academic crowd, of course, believe that the crisis has been handled, and that we can settle back to "business as usual." But such pundits are viewing only the trees, not the forest. They see correct Federal Reserve policy and legitimate fiscal policy on the part of the Federal Government. But this view comes from a false concept of economics and from a major failing of humans – their use of "euphemism" to flee from reality. For example, almost all of today's scholars and pundits...
  • Crack In Ivory Curtain

    04/08/2014 12:32:47 PM PDT · by Academiadotorg · 7 replies
    Accuracy in Academia ^ | April 8, 2014 | Malcolm A. Kline
    When academia practices real diversity, one wonders how long it can continue. It usually doesn’t, unfortunately. Right now there is a crack in the Ivory Curtain in the person of Manuel Suarez-Mier, economist in residence at the School of International Service at American University. To call him politically incorrect would be an understatement. We mean that as a compliment. “I contend that any organization that has to use the word democratic as an adjective is anything but,” Suarez Mier said at a conference in Chicago co-sponsored by the Atlas Network and the Illinois Policy Institute. “Think about it: The Democratic...
  • Making Fun of Keynesian Economics

    03/10/2014 5:51:24 AM PDT · by Kaslin · 11 replies ^ | March 10, 2014 | Daniel J. Mitchell
    <p>It’s sometimes difficult to make fun of Keynesian economics. But this isn’t because Keynesian theory is airtight.</p> <p>It’s easy, after all, to mock a school of thought that is predicated on the notion that you can make yourself richer by taking money from your right pocket and putting it in your left pocket.</p>
  • MLA “Solves” Financial Crisis

    02/03/2014 7:06:32 AM PST · by Academiadotorg · 5 replies
    Accuracy in Academia ^ | January 31, 2014 | Malcolm A. Kline
    Usually when a group gets “mission creep,” it’s because they’ve accomplished their original mission. Yet and still, English professors at the Modern Language Association (MLA) think they can “solve” America’s financial crisis even while illiteracy is rampant in the United States. “How many errors in the financial crisis could be solved with freshman comp logic?” Matthew E. A. Seybold asked a crowd at a panel at this year’s MLA convention in Chicago. Seybold teaches at the University of Alabama at Tuscaloosa. Business and economics courses are “mired in Marx and not Marx,” Seybold averred. Then Seybold went on to quote...
  • Keynes Is Dead

    01/22/2014 10:33:26 AM PST · by Kaslin · 12 replies ^ | January 22, 2014 | Mike Shedlock
    Economist Andy Xie has an interesting article in CaixinOnline that contains his views on 2014. I agree with nearly all his viewpoints but one. Please consider Breaking Out Is Hard by Andie Xie. The global economy is unlikely to accelerate in 2014. The hope that the U.S. economy is reaching escape velocity won't pan out. Abenomics is likely to fizzle out in 2014. Emerging economies will likely remain in low gear. The chances are that the global economy, weighted by nominal GDP at current exchange rates, will grow at 2 percent Globalization, turbo-powered by information technology, has cut short the...
  • Krugman’s Adventures in Fairyland

    11/23/2013 2:06:22 PM PST · by BfloGuy · 9 replies
    The Mises Daily ^ | 11/23/2013 | William L. Anderson
    After studying and teaching Keynesian economics for 30 years, I conclude that the “sophisticated” Keynes­ians really do believe in magic and fairy dust. Lots of fairy dust. It may seem odd that this Aus­trian economist refers to fairies, but I got the term from Paul Krugman. According to Krugman, too many people place false hopes in what he calls the “Confidence Fairy,” a creature created as a retort to economist Robert Higgs’s concept of “regime uncertainty.” Higgs coined that expression in a 1997 paper on the Great Depression in which he claimed that uncertainty caused by the policies of Franklin...
  • We Can't Solve Our Problems If We Deny We Have Them

    10/25/2013 5:31:09 PM PDT · by afraidfortherepublic · 1 replies
    Investors Business Daily ^ | 10-25-13 | Sen. Ron Johnson (WI)
    How do you solve a problem if you refuse to admit you have one — or if you delude yourself into thinking it's not as bad as it actually is? The answer: You don't. You might minimize symptoms and make some progress. But unless you address the root cause, you will not find a real long-term solution. Unfortunately, far too many politicians in Washington refuse to acknowledge — and as a result, never accurately describe — the challenges currently facing America. I'm not sure why so many choose to keep their heads in the sand, but their state of denial...
  • Walmart is More Valuable than Uncle Sam

    10/01/2013 4:19:36 AM PDT · by Kaslin · 19 replies ^ | October 1, 2013 | Michael Schaus
    While all eleven minutes of Obama’s apocalyptic “government shutdown” speech is well within the definition of “disingenuous”, there was one mundane comment that demands attention. The comment was more or less a throwaway line, aimed at illustrating the gravity of a government shutdown. Startling, the President uttered a fact during his 11 minutes of blaming Republicans. The Federal Government is, in fact, the largest employer in America. “The federal government is America's largest employer” Obama reminded the press as he launched into a childish explanation of Keynesian economics. And now, some of those “non-essential” employees might be getting furloughed. (Inexplicably,...
  • Sowell: A Return to Keynes?

    10/14/2013 10:11:16 AM PDT · by jazusamo · 22 replies
    Creators Syndicate ^ | October 15, 2013 | Thomas Sowell
    The nomination of Janet Yellen to become head of the Federal Reserve System has set off a flurry of media stories. Since she will be the first woman to occupy that position, we can only hope that this will not mean that any criticism of what she does will be attributed to sex bias or to a "war on women." The Federal Reserve has become such a major player in the American economy that it needs far more scrutiny and criticism than it has received, regardless of who heads it. Ms. Yellen, a former professor of economics at Berkeley, has...
  • Earth To Keynesians, Government Spending Isn't Demand

    07/15/2013 6:51:06 AM PDT · by SeekAndFind · 8 replies
    RCM ^ | 07/15/2013 | Jeffrey Dorfman
    Keynesians continue to claim the recent recession and weak recovery have as their root cause a shortage of demand. If only the government would spend more money in the short run to augment demand from the private sector, we could fully recover. At that point, miraculously, the economy begins to generate sufficient demand on its own to replace the temporary government stimulus spending and the government can go back to business as usual. The problem with this scenario is that it misunderstands the role of demand in an economy and it also equates continuing, private sector demand with temporary government...
  • An Open Letter to the Harvard Community [re comment on John Maynard Keynes]

    06/05/2013 12:38:05 PM PDT · by Enchante · 14 replies
    Harvard Crimson ^ | May 3, 2013 | Niall Ferguson
    .... I was duly attacked for my remarks and offered an immediate and unqualified apology. But this did not suffice for some critics, who insisted that I was guilty not just of stupidity but also of homophobia. I have no doubt that at least some students were influenced by these allegations. Nobody would want to study with a bigot. I therefore owe it to students—former and prospective—to make it unambiguously clear that I am no such thing.....
  • Keynes' work in light of his sexual preference

    05/11/2013 3:54:45 PM PDT · by Jandy on Genesis · 18 replies
    Ethics Forum ^ | May 11, 2013 | Ricardo Crespo
    Were the theories of John Maynard Keynes blemished by the fact that he was a staunch eugenicist, a homosexual, and a bigot? Ricardo Crespo, an expert on Keynes, believes that these factors are not significant in evaluating Keynes' contribution. Ricardo Crespo John Maynard Keynes, the last century’s most famous economist, was in the news this week. Harvard’s celebrity economic historian Niall Ferguson was addressing the Altegris strategic investment conference in California, an event for investors and financial analysts, when he was asked a question about Keynes’s impact upon modern economies. To the consternation of his audience, he said that the...
  • How Did Gay Bashing Become Part of the Debate Over Government Spending and Deficits?

    05/09/2013 5:31:23 AM PDT · by spankalib · 4 replies
    Justia, Legal Analysis and Commentary ^ | May 9, 2013 | Neil H. Buchanan
    Don't know @ excerpting Justia...
  • Keynes Was Gay -- Not That There's Anything Wrong With That

    05/05/2013 1:31:51 PM PDT · by Yardstick · 41 replies
    National Review Online ^ | May 4, 2013 | Jonah Goldberg
    "There’s a brouhaha a-brewin’ over comments by Niall Ferguson at an investor conference. Ferguson suggested that because John Maynard Keynes was gay, effete, and childless he might have lacked concern for posterity. After all, Keynes famously proclaimed ”in the long run we’re all dead.” In a nigh-upon hysterical and terribly written item, Tom Kostigen of Financial Advisor says Ferguson took “gay-bashing to new heights.” He adds, “Apparently, in Ferguson’s world, if you are gay or childless, you cannot care about future generations nor society.”  Now, I don’t know exactly what Ferguson said, and I don’t trust Kostigen’s version of events either. There are few full quotes and virtually...
  • Jim Rogers: We're Wiping Out The Savings Class Globally, To Terrible Consequence (video)

    04/05/2013 10:05:06 AM PDT · by dennisw · 13 replies
    youtube ^ | Published on Mar 9, 2013 | Jim Rogers
      video   Jim Rogers decries the growing uncertainty and recklessness of global central planners as the world enters unchartered financial markets: For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before. How it’s going to work out, I don't know. It just depends on which one goes down the most and first, and they take turns. When one says a currency is going down, the question is against what? because they are all trying to debase themselves. It’s a peculiar time in world history.I own the...
  • Paul Krugman Declares Personal Bankruptcy (Satire)

    03/07/2013 7:43:56 PM PST · by Hoodat · 9 replies
    The Daily Currant ^ | Mar. 06, 2013 | Staff
    Economist and columnist Paul Krugman declared personal bankruptcy today following a failed attempt to spend his way out of debt. In a Chapter 13 filing to the United States Bankruptcy Court in the Southern District of New York, lawyers for Krugman listed $7,346,000 in debts versus $33,000 in assets. The majority of his debts are related to mortgage financing on a $8.7 million apartment in lower Manhattan, but the list also includes $621,537 in credit card debt and $33,642 in store financing at famed jeweler Tiffanys and Co. The filing says that Krugman got into credit card trouble in 2004...
  • Obama Is Not a Deficit Hawk. He's Just a Keynesian

    02/13/2013 12:15:30 PM PST · by Kaslin · 8 replies ^ | February 13, 2013 | Kevin Glass
    Over at Investors Business Daily, Jed Graham writes about "the deficit chart that should embarrass budget hawks," which shows that the federal deficit has been shrinking in the last two years and is projected to shrink further this year: Graham writes that the draw-down in federal spending puts a precarious economic recovery at risk. That's certainly a take in line with conventional Keynesian economic analysis - the Congressional Budget Office has similarly projected this year's sequester to knock 0.6% off of projected GDP growth and cost 750,000 jobs by the end of the year. Indeed, the current policy environment sees...
  • Obama's Keynesian Economy Failure!!!

    01/30/2013 9:50:59 AM PST · by NOBO2012 · 8 replies
    Michelle Obama's Mirror ^ | 1-30-2013 | MOTUS
    News Alert: Economy Shrinks in the Fourth Quarter, 2012 – unexpectedly, of course. Big Guy, Te’oing the Recovery What? I thought we would be in the middle of a massive Keynesian recovery by now; that’s what swept Big Guy to reelection, right? I guess the the economy in retrograde is good news for Senator Mary “I am not going to keep cutting the discretionary budget, which by the way is not out of control, despite what you hear on Fox News”  Landrieu, however. Although it looks like we may have a bigger problem than Fox News, this latest economic report...
  • The Dirty Bastard Keynes

    01/29/2013 2:49:31 PM PST · by ABrit · 16 replies
    A word in your ear ^ | Jan 29,2013 | Word
    The Dirty Bastard Keynes Keynes was a Communist. He designed a system that was intended to pauperise the Capitalist bourgoisie. By design, his monetary policy is counter cyclical. Therefor as soon as there is surplus income leading to demand for goods and inflating their prices, the Keynesian reflex is to reduce the supply of money. This means that because of the mostly suppressed demand the occasional bout of prosperity leads to ruthless increases in interest rates and taxes, and to an inability of the middle class to save, either for the present or the future. The state or large capitalist...
  • The Madness of Keynesian Economics

    12/24/2012 7:50:37 AM PST · by Moseley · 14 replies
    American Thinker ^ | December 24, 2012 | Jonathon Moseley
    President Barack Obama demands more stimulus spending to avoid the "fiscal cliff." Obama increased the national debt $6 trillion to $16 trillion. Yet the Democrats' 'cure for what ails ya' is even more spending. Obama demands around $75 billion in new spending to stimulate the economy in 2013. "Keynesian Economics" is the insane belief that the economy can be stimulated by government spending. It provides the excuse to depart from common sense that allows politicians to ignore the alarm bells. It is ludicrous mainly because our government doesn't have any money to spend. If the government had a surplus saved...
  • Some Liberals Actually Think “a record comparable to Franklin Roosevelt’s” Is a Good Thing – Sheesh!

    11/03/2012 12:42:57 PM PDT · by DeprogramLiberalism · 4 replies
    Deprogramming Liberalism ^ | June 15/12 | Jim Autio
    [written September, 2011, but even more applicable today] Re:  Could this time have been different?Ezra Klein     Washington Post columnistEzra Klein: Some partisans offer a simple explanation for the depth and severity of the recession: It’s the stimulus’s fault. If we had done nothing, they say, unemployment would never have reached 10 percent.This is the wrong way to look at it. The unemployment rate numbers are so skewed as to be virtually worthless. For instance, if all of the people that have given up searching for jobs were included in today’s unemployment rate it would be over 11%: Townhall Total employment is...
  • Flooded by Keynesianism

    11/03/2012 7:23:05 AM PDT · by Kaslin · 8 replies ^ | November 3, 2012 | Rich Tucker
    Hurricane Sandy was an invader, one that splashed ashore with as much destructive power as any foreign (or perhaps interstellar) invader could hope to bring to bear against our coasts. Thus, in the opinion of economist Paul Krugman, the storm should help boost the American economy. “If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months,” the Nobel Prize winning economist declared on CNN in 2011....
  • Sarah Palin takes the initiative

    08/22/2012 11:04:28 AM PDT · by Bratch · 32 replies
    The Hill ^ | August 22, 2012 | Bernie Quigley
    It was an error for the Republicans to bring in New Jersey Gov. Chris Christie as the key speaker at their convention. While all of the excitement and adventure in politics in the last three years has been among conservatives, Christie is the great, faithless bet against conservatives’ future and a futile attempt to institutionalize the past. At CPAC events these last three years, up to 40 percent of young conservatives yearned for Ron Paul and Judge Andrew Napolitano; STATES’ RIGHTS, SOUND MONEY AND CONSTITUTIONAL GOVERNMENT. The other 60 percent — the National Review crowd, the neocons, the Bush apparatus,...
  • Donald Boudreaux: Was Milton Friedman a Secret Admirer of Keynes?

    08/04/2012 7:32:30 AM PDT · by FactsNLogic · 6 replies
    The Wall Street Journal ^ | Aug 3, 2012 | Donald J. Boudreaux
    With the possible exception of Adam Smith, no person in history is more widely recognized as ably championing free markets than Milton Friedman. Justly so: For more than 60 years until his death in 2006, he pressed the case for capitalism and freedom with impeccable scholarship, good cheer, impressive vigor and unmatched clarity. Despite his clarity, there are a handful of people whose inability or unwillingness to grasp Friedman's arguments leads them to misrepresent his writings and policy recommendations. "I conclude that Keynes's political bequest has done far more harm than his economic bequest and this for two reasons. First,...
  • Quite Possibly The Dumbest Thing I’ve Heard An Economist Say

    07/17/2012 1:12:56 PM PDT · by Zakeet · 19 replies
    Zero Hedge ^ | July 17, 2012 | Simon Black
    In the mid-1800s, a cousin of Charles Darwin by the name of Francis Galton wrote a series of works expanding on an old idea of selective breeding in human beings. Galton’s theory became known as eugenics. At its core, eugenics was underpinned by an assumption that talent and genius were hereditary traits, and that deliberate breeding could improve the human race. Within decades, intellectuals were spending their entire careers studying these ideas, quickly spawning a number of different fields dedicated to ‘racial sciences.’ Scholars began closely examining racial differences and building volumes of statistics on everything ranging from intelligence to...
  • Keynesianism Explained In a Picture

    07/17/2012 5:08:14 PM PDT · by BfloGuy · 13 replies
    Carpe Diem ^ | 7/17/2012 | Mark Perry
  • Krugman's Blind Faith

    06/05/2012 5:17:41 AM PDT · by IBD editorial writer · 32 replies
    Investor's Business Daily ^ | 06/05/2012 | IBD Staff
    When does respect for an economic theory become fanaticism? For an answer, check out Paul Krugman's increasingly desperate attempts to defend Keynesian economics against its obvious failures. The New York Times columnist doesn't claim publicly to be a religious man, but he sure acts like it when it comes to his beloved John Maynard Keynes. Any evidence that Keynesianism doesn't work must be wiped away, even if it means conjuring up mythical numbers to do so. Case in point is Krugman's latest campaign to argue that President Obama has been an austerity-driven tightwad. At the same time, Krugman says President...
  • Romney’s Big Fat Wet Kiss to Keynesian Economics (RINO Mitt flops back to liberalism alert)

    05/26/2012 5:53:09 AM PDT · by Zakeet · 36 replies
    New York Magazine ^ | May 25, 2012 | Jonathan Chait
    Not that there's anything wrong with that! Keynes' theories remain the essential guide to understanding recessions. The real news in Mitt Romney’s interview with Mark Halperin, as Charles Pierce points out, is that Romney openly repudiated the central argument his party has been making against President Obama for the last three years: that he spent too much money and therefore deepened the economic crisis. Indeed Romney himself had been making this very case as recently as a week ago (“he bailed out the public sector, gave billions of dollars to the companies of his friends, and added almost as much...
  • A Contradiction in Keynesian Fiscal Policy

    05/07/2012 10:22:04 AM PDT · by LucianOfSamasota · 4 replies
    CATO Institute ^ | May 7th, 2012 | Chris Edwards
    There’s an internal contradiction in the way that Keynesian-oriented economists and policymakers address the federal budget situation. I’ve noticed it over and over. A passage in a Washington Post op-ed today by Mohamed El-Erian of Pimco captures it perfectly: [T]he U.S. fiscal situation requires a carefully designed and well-timed overhaul to make government finances more efficient and fairer—among other things, combining immediate stimulus with a credible set of medium-term tax and entitlement reforms and a sustainable effort to reduce the deficit over time. El-Erian seems to want more deficit-fueled “stimulus” now, combined with a “credible” plan that would reduce the...
  • It's official, Keynes was Right

    04/24/2012 8:02:08 AM PDT · by MichaelP · 24 replies
    Yahoo Finance: The Daily Ticker ^ | 04/24 | Henry Blodgett
    This morning brings news that Europe may finally be beginning to soften on the "austerity" philosophy that has brought it nothing but misery over the past several years. The "austerity" idea, you'll remember, was that the continent's huge debt and deficit problem had ushered in a "crisis of confidence" and that, once business-people saw that governments were serious about debt reduction, they'd get confident and start spending again. That hasn't worked. Story at link
  • Keynesianism in a cartoon

    02/24/2012 8:16:29 AM PST · by grayhog · 6 replies
    youtube ^ | 2/15/2012
    "Two economists (Keynes and Krugman) and a bird" This was hilarious but so accurate...the cartoon is 1:19 long. Enjoy.
  • The K word [Keynesian]

    01/30/2012 5:21:37 PM PST · by BfloGuy
    Cafe Hayek ^ | 1/29/2012 | Russ Roberts
    Jerry Jordan makes the case against what he call K-brand economics. (HT: Dan Klein) Very well done. An excerpt: It is tempting to think that the Soviets perfected negative-value-added investment — the stuff produced is worth less than the value of the resources to produce it. However, most families have experienced this first hand. It usually surfaces with an entrepreneurial adolescent deciding it would be a good idea to sell lemonade at the curbside to passersby Parents, wanting to encourage the idea that working and making money is a good idea, drive around to buy the lemon, sugar, designer bottled...
  • Keynes-Inspired Great Depression; Lessons Not Learned

    01/25/2012 7:58:49 AM PST · by Kaslin · 7 replies ^ | January 25, 2012 | Mike Shedlock
    A pair of articles by Austrian economist professor Antal E. Fekete just might have one wondering who is more in the loony bin, mainstream economists like Krugman or those consistently chanting about the death of the dollar coupled with hyperinflation. Premature Obituaries Please consider Premature Obituaries It is open season for wild monetary prognostications. More premature obituaries on the dollar have been posted on the Internet. For example, see Jim Willie’s The US Dollar Paper Tiger (Gold-Eagle, January 11) with epitaphs like “the U.S. dollar rising to the cemetery”, or “dollar death dance”. Or see another article, Jeff Nielsen’s entitled...
  • Keynes Was Right

    12/30/2011 11:53:26 AM PST · by Beave Meister · 26 replies
    The New York Times ^ | 12/29/2011 | PAUL KRUGMAN
    “The boom, not the slump, is the right time for austerity at the Treasury.” So declared John Maynard Keynes in 1937, even as F.D.R. was about to prove him right by trying to balance the budget too soon, sending the United States economy — which had been steadily recovering up to that point — into a severe recession. Slashing government spending in a depressed economy depresses the economy further; austerity should wait until a strong recovery is well under way. Unfortunately, in late 2010 and early 2011, politicians and policy makers in much of the Western world believed that they...
  • Mitt Romney. 2012 Presidential White Papers #5 (A devastating piece

    12/20/2011 8:19:30 AM PST · by Laissez-faire capitalist · 22 replies
    Club for Growth ^ | 2007 (with update) | Staff
    The Club for Growth wrote a white paper on Governor Romney back in 2007. Most of the information below is from that repory, but since Romney has been outspoken on several issues then, weve updated his record to reflect those positions. ...During his initial 2002 campaign Romney refused to sign an anti-tax pledge, but he pledged to balance the budget without raising taxes and touted his fulfillment of that pledge throughout his term. But the details suggest that he broke his verbal committment. Romney did not impose any broad-based tax hikes he imposed a slew of fee hikes. He opposed...
  • Bye-Bye Keynes?

    12/19/2011 7:45:36 PM PST · by neverdem · 22 replies
    Real Clear Politics ^ | December 19, 2011 | Robert Samuelson
    "Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." -- John Maynard Keynes, 1936 WASHINGTON -- The eclipse of Keynesian economics proceeds. When Keynes wrote "The General Theory of Employment, Interest and Money" in the mid-1930s, governments in most wealthy nations were relatively small and their debts modest. Deficit spending and pump priming were plausible responses to economic slumps. Now, huge governments are often saddled with massive debts. Standard Keynesian remedies for downturns -- spend more and tax less -- presume the willingness of bond markets to finance...
  • The True Cost of Keynes (of trying to get something for nothing

    12/05/2011 4:57:33 PM PST · by MegaSilver · 2 replies
    PrudentBear ^ | 5 December 2011 | Martin Hutchinson
    Adolf Hitler, Joseph Stalin and Mao Zedong each killed tens of millions of people, and John Maynard Keynes was a pacifist who never fired a shot in anger. However economically, when the billions come to be totted up, it may well be the case that Keynes was the most destructive of the four. He cannot entirely be blamed for mistakes in monetary policy, which he never understood, and even his “stimulus” ideas owed much to those who came before him – for example Arthur Pigou – and after him – for example Joan Robinson. Yet the other value destroyers had...
  • The Stimulus: Jump Starting a Car with No Engine

    11/30/2011 12:42:03 AM PST · by neverdem · 6 replies · 1+ views
    American Thinker ^ | November 25, 2011 | Mercer Tyson
    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...
  • Keynes vs. Hayek: The Debate Continues

    11/27/2011 5:15:24 AM PST · by OddLane · 25 replies
    American Rattlesnake ^ | November 27, 2011 | Gerard Perry
    Such was the title of a debate held at the Asia Society, sponsored by Thomson Reuters, which I attended several weeks ago. Coming at a time of agonizing societal fissures arising from debates over austerity, stimulus, and the wisdom of government intervention into the economy, this event pitting the backers of a Hayekian view of economics against those who espoused a Keynesian model seemed incredibly timely. After explaining to the audience the general structure of the debate and how it would be judged-spectators were given gadgets similar to those distributed at IQ2 debates, which they were to use to vote...
  • Is Obama Really a Keynesian?

    11/21/2011 12:41:57 PM PST · by Shout Bits · 19 replies
    Shout Bits Blog ^ | 11/21/2011 | Shout Bits
    Last week, NPR concluded its series on influential economic philosophers with the left's favorite son, John Maynard Keynes. Unsurprisingly, it was a fawning piece filled with left-wing Democrats voicing praise and allegiance. More interestingly, the piece flatly admitted that Pres. Obama's policies are Keynesian – most left-wing pundits have declined to tie Obama's philosophies with the largely discredited Keynes. Politicians and their backers shy away from tying themselves to polarizing figures like Keynes, Hayek, or Friedman because those figures' stances are inflexible; politicians like to twist with the winds of populism. Obama uses code words for Keynesianism and socialism, but...
  • Where Keynes Went Wrong: What if government spending depresses instead of stimulates?

    11/02/2011 6:56:02 AM PDT · by SeekAndFind · 26 replies
    Weekly Standard ^ | 11/02/2011 | Charles Wolf Jr.
    It is generally recognized that the conceptual underpinnings for so-called stimulus programs lie in the theory developed by John Maynard Keynes in the 1930s. That the practical results of these programs in recent years have been negligible, if not negative, while their costs have been high, may be sufficient grounds for avoiding them in the future. But what if the theory itself is flawed? For many economists, flawed theory would be a greater concern​—​surely more hurtful to professional pride​—​than ineffectual results from programs based on a valid theory. Moreover, it would mean no amount of effort to improve the design...
  • The Tale of the Dueling Economists (Keynes and Hayek)

    10/29/2011 2:34:17 PM PDT · by reaganaut1 · 36 replies
    New York Times ^ | October 22, 2011 | NANCY F. KOEHN
    JOHN MAYNARD KEYNES and Friedrich Hayek. The names conjure opposing poles of thought about making economic policy: Keynes is often held up as the flag bearer of vigorous government intervention in the markets, while Hayek is regarded as the champion of laissez-faire capitalism. What these men actually thought — about the economy and each other — is more complicated, as Nicholas Wapshott demonstrates in “Keynes Hayek: The Clash That Defined Modern Economics” (W. W. Norton, $28.95). This lively book explores one of the most pressing economic questions of our time: To what extent should government intervene in markets? And in...
  • Liberalism’s unwashed last stand

    10/18/2011 5:44:43 AM PDT · by safetysign · 5 replies
    The Washington Times ^ | 10/17/2011 | Dr. Milton R Wolf
    The failed Obama presidency, however, is just the beginning. The most liberal president in history, with an assist from his predecessor, has unmasked the structural flaws of liberalism itself. All told, nearly $5 trillion of government bailouts and stimulus spending between the two presidents failed to rescue our economy. Their $5 trillion bought the most expensive lesson in human history: Government cannot create wealth, and an overtaxed and overregulated private sector can’t, either. Keynesian economics, as it has evolved, is the debunked belief that government can stimulate, direct, regulate and bail you into prosperity. This failed religion is now so...
  • The 'Third Way' Bubbles Are Bursting

    10/15/2011 4:10:07 PM PDT · by jobim · 8 replies
    Real Clear Markets / ^ | October 14, 2011 | Robert Tracinski
    When the financial crisis hit three years ago, many gleeful leftists assumed that the long-anticipated failure of the free-market system had finally come and that this crisis would do for capitalism what the fall of the Berlin Wall did for communism. In fact, it is not capitalism that is failing. We are beginning to see this in Europe, where the debt crisis is a crisis of the welfare state. I think we are also about to see it, possibly in a more spectacular way, in another leading example of a capitalism-socialism hybrid: the so-called "state capitalism" of China. As the...
  • Keynesian Twilight Zone

    09/19/2011 8:43:01 AM PDT · by GonzoII · 11 replies
    American Catholic ^ | Monday, September 19, 2011 A.D. | Donald R. McClarey
    Keynesian Twilight Zone Published Monday, September 19, 2011 A.D. | By Donald R. McClarey There are few things sadder than a one trick pony whose trick fails to work. Obama, with a faith whose fervency cannot be doubted, believes with all his soul that vast government spending is the mechanism to lift the country out of this never ending bad slump. That his policies have failed to do anything other than to increase our massive public debt, sways him not at all. For a true ideologue, and that is what Obama clearly is, a collision between reality and beliefs merely...