Posted on 07/23/2010 12:51:10 PM PDT by SonOfDarkSkies
Veronique de Rugy, a senior research fellow at the Mercatus Center, writes in the National review’s blog that the Obamanomics job estimate is based on an economic fallacy: that government spending creates more economic activity than it consumes, thereby transforming each dollar government takes in into $2.50.
De Rugy notes that history shows just the reverse effect: A dollar given to the government actually reduces GDP, due to the waste, inefficiency and dead-weight tax loss of removing money from productive ...
The Washington Post reports that The U.S. Chamber of Commerce, in an open letter, accused the Obama administration of not making job creation a priority.
"Instead of continuing their partnership with the business community and embracing proven ideas for job creation, they vilified industries while embarking on an ill-advised course of government expansion, major tax increases, massive deficits, and job-destroying regulations," the letter said.
(Excerpt) Read more at moneynews.com ...
More appropriately, Keynesian economics coupled with a mix of Cloward and Piven.....=.=
Referencing the best study done on the multiplier effect so far — by economists Robert Barro and Charles Redlick of Harvard University — de Rugy notes that history not only shows no positive multiplier effect, but a negative one.That is, a dollar given to the government actually reduces GDP, due to the waste, inefficiency and dead-weight tax loss of removing money from productive uses in the private sector.
The reality is every dollar the government spends costs the economy in terms of output. We're seeing that now. The "medicine" of stimulus via higher government spending turns out to be poison.
The dollars need to be spent more wisely, creating better productivity, more efficient instigation of revenue flows through the monetary system, or by capitalizing ventures that actually save more money than they would have in other ways, the money being spent is only providing a net burden. That’s the BEST that can be said for a Keynesian approach.
In reality, government never spends money more efficiently itself than can individuals and companies, in an effort to start money flows through the system. Government is a dead weight, siphoning economic utility from every dollar spent, while siphoning every dollar saved into itself, in the form of taxes and bonds, rather than into productive companies.
Obamunism aka radical socialism not conducive to the recruitment of productive workers.
World History says once again:
“WELL DUHHH!!!”
"Instead of continuing their partnership with the business community and embracing proven ideas for job creation, they vilified industries while embarking on an ill-advised course of government expansion, major tax increases, massive deficits, and job-destroying regulations," the letter said.One slight correction: Obamao and his central committee never had a "partnership with the business community.
"Redistribute the wealth" is a little code-lingo for revolution, Comrade.
The intention was to destroy jobs and make people more dependent on government.
Jobs on the Gulf.
Jobs for auto dealerships.
Jobs at NASA.
And the beat goes on.
You redistribute the wealth?
WE WILL redistribute the power!
We need a liars prison for anyone in the Oval Office or Congress. Also a debtors prison for the same people. For those that will not develop a budget for the country, they should be forced, by law, to leave office.
With the new 1099 rules coming into effect you won’t be able to sell anything over 600 dollars with out a 1099 being issued—all so they can get money from used merchandise that was already taxed (when new), from money that was already taxed to purchase said item.
Obama administration is proof that higher education is useless unless you have had real job at some point in your life,the whole tribe is failure on the march.
Economist Harold Uhlig concludes there is a short-term “multiplier” but also estimates that taking into account all the downstream effects (i.e., that deficit spending eventually has to be paid for etc.), the economy loses $3.40 in output for every dollar of government spending.
In contrast, every dollar of tax cuts increases economic output by $2.40 using the same methodology.
http://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.100.2.30
OUCH!!!
Obama’s approach to stimulating the economy 5.7 times less effective than the tried-and-true method of cutting taxes, the way Kennedy, Reagan and GWB all demonstrated. Yet Obama claims that resorting to such policies would move us backwards!
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