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Title: The Failure of Obama’s Stimulus: Kenyanomics is the final nail in the coffin of Keynesian economic theories.
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URL Source: http://scottystarnes.wordpress.com/ ... -stimulus-keynesian-economics/
Published: Jun 17, 2011
Author: scottystarnes
Post Date: 2011-06-17 11:46:22 by no gnu taxes
Keywords: None
Views: 6304
Comments: 29
Obamanomics is the final nail in the coffin of Keynesian economic theories. From Investors.com: You have to wonder who’s advising Democrats these days. With the economy stuck in a two-year, Obama-dug rut, their only new economic growth idea is to raise taxes and hike federal spending. According to The Hill, Democrats are so frustrated with President Obama’s “passivity on the economy” that they’re actively working on a fresh stimulus package that would include significant new spending on roads and other infrastructure, paid for by closing various tax loopholes. Didn’t their first stimulus include infrastructure spending? Remember Obama’s stimulus at work road signs? Sen. Tom Harkin, D-Iowa, told the publication that “the last election was about jobs and the economy, and now we’re in a position where we really do need some economic pump-priming by the federal government.” The Democrats have pumped a lot. The Federal Reserve is looking at a third round of quantitative easing…a.k.a…printing money out of thin air to buy Obama’s debt. Has Harkin been asleep for the past two years? Doesn’t he remember that Democrats already pushed through $830 billion worth of “pump priming”? And that this was supposed to stimulate growth and hold unemployment under 8%? Instead, quarterly GDP growth has averaged an anemic 2.8% since the recession officially ended two years ago, and unemployment has been at or above 9% for all but two of the past 24 months. …and Democrats think this is a recovering economy. Indeed, few ideas have been so thoroughly discredited as the one that says more government spending will increase jobs. As the chart above shows, government outlays climbed more than 40% between 2006 and 2011. At the same time, the employment figure has dropped by almost 5 million. That is Keynesian economics. The government spends our money in the hopes of creating jobs. It failed then and it’s failing now.
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#1. To: no gnu taxes (#0)
The actual Keynsian aspects, i.e. demand side, of the stim worked. Theres' no way around it.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" These things take time....I'm still waiting for that trickle down to get here, it's only been thirty years. I figure another ten should do it.
The Obama stimulus was largely opposed by Keynsian economics because it largely was directed at tax cuts and direct aid to states, rather than to infrastructure investments. Paul Krugman, 1/6/2009: In reality, the last 10 years should be the final nail in the coffin of those who think tax cuts will lead us to prosperity.
"Thats because your basically and idiot." Yepper. The GOP loves to pretend that cutting taxes is a "new" idea.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" a rising tide sinks all hole riddled boats ! The mother ship hasn't helped anybody !
If you ... don't use exclamation points --- you should't be typeing ! Commas - semicolons are for girlie boys !
The final nail was driven into the coffin of Keynesian economic theories in the 1970s when we had hyperinflation at the same time we had a recession. Keynesian theories (specifically the Philips curve) said that this was impossible. Unfortunately, the Keynesian Zombies just wouldn't stay dead. This time we have to shoot them in the head.
I guess you were too young to experience those Nixon/Ford even/odd fill up day gas lines.
What year?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I was 12 and working in my father's gas station at the time. Nixon was a Keynesian who took us off the gold standard and imposed wage and price controls. Wage and price controls is why we had those long gas lines. Johnson, Nixon, Ford, Carter, Obama -- all the same on economics. The two Bushes as well.
That's why we had those long gas lines. We had those long gas lines because the oil companies decided to slow gas production until the prices (which weren't affected by wage and price controls) hit the level they would sell at.
That's complete an utter horseshit. Europeans were affected by the Arab oil embargo too, yet they did not experience shortages and long gas lines because they did not impose price controls. Prices rose in Europe and people used less. This is called supply and demand. Gas wasn't the only shortage that Nixon caused with his wage and price controls. We also had shortages of beef, potato chips, and even toilet paper. All of the shortages disappeared when the price controls were lifted. It's truly incomprehensible how economically illiterate you and the other leftist loons on LibertysFlame really are.
Boy are you wrong. Two Arab oil embargoes - one overt embargo and one de facto by limiting production - are why we had long gas lines during Nixon/Ford. Both of these occurred AFTER price controls were lifted...one occurred as a result of the Yom Kippur War and the other because of the decline in the dollar.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" Boy are you wrong again. Not only did Europe have lines but it limited purchases, i.e. rationed, in a far more severe fashion than the US did.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" It's truly incomprehensible how economically illiterate you and the other leftist loons on LibertysFlame really are. Beef cuts were just renamed and sold at the higher price and who can't live without potato chips? Sear catalogs work real well for TP I see when cornered you resort to your default name caller position. You just can't help yourself. A one hundred percent increase in energy prices coupled with the resultant intentionally created shortages from both foreign sources and domestic producers to squeeze the small businessman and the US middle class was the cause of your supposed inflation recession. And the Japanese were starting to buy everything that wasn't nailed down forcing the real estate market to eventually bubble, even with the high interest rates and the balloon payments. Nixon/Ford and later Carter did very little to stop it. Reagan allowed the sharks to take their profits.
Wrong again bozo. The Arab Oil Embargo started in Oct 73. Nixon didn't completely lift his wage and price controls until April 74.
I'm not the one who is corned here. ROTFLMAO.
Nope. NOt wrong. Oil had a two tiered price market...price on oil produced prior prior to the end of 1972 was limited to the March 1973 price +35 cents and anything produced AFTER the start of 1973 or from a new well that came into existence from 1972 on was uncontrolled. The controls didn't matter anyway, oil producers simply changed the "born on date" of their barrels.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" ROTFLMAO. Yes you are.
The controls didn't matter anyway, oil producers simply changed the "born on date" of their barrels. Jwpegler again underestimates the ability of the oil industry to get around regs they themselves lobbied for.
The "shortage" was redux from the Nixon/Kissinger plan to have Iran/Iraq et al purchase US made military equipment out of OPEC nations' oil booty. Doing so caused the US to ramp up oil imports from 1969 on...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" BTW, Iran, which was supposed to be our ally and a nation to which, despite its own riches, we propped up with agriculture credits and subsidies, went along with the embargo. Nixon should have taken them to task over it. At the time, Iran could have alleviated the shortfall.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I think the Shah was having internal problems of his own and trying to not look so 'western'.
Taken not took...geez...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" The Texas oilichrats that run the Middle East business did not want to end the oil embargo. Money was just too good.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
They had it good both ways...they held :old" oil off the market and made more money off "new" oil. Of course, all they did was rebarrel the "old" oil.
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" Whining-old is TRULY delusional. The leftist mind-set is based on the belief that whatever you *wish* something to be, really IS, and that results are minor considerations. In effect, wishful thinking trumps reality, in their twisted minds. By that logic, I wish they would either grow up, or just DIE. Considering how fast the economy is folding up- like a cheap suit- I'll get my wish. The only problem is, the leftists idiots want to take us *with* them. MY answer to that; "Fat chance."
At some point the free loader generation will die. Then the country can move ahead. It's unfortunate that you and I had to bear the burden of their mess. But hopefully our kids won't have to.
Yep. ((((sigh))))
yeah, and catch up to countries such as China, India, Germany, Norway, Japan, Canada, etc. who don't have things like "socialized medicine" or social safety nets. Oh wait...
"Thats because your basically and idiot."
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#2. To: war, no gnu taxes (#1)
The actual Keynsian aspects, i.e. demand side, of the stim worked. Theres' no way around it.
#3. To: no gnu taxes (#0)
Obamanomics is the final nail in the coffin of Keynesian economic theories.
I see the following scenario: a weak stimulus plan, perhaps even weaker than what we’re talking about now, is crafted to win those extra GOP votes. The plan limits the rise in unemployment, but things are still pretty bad, with the rate peaking at something like 9 percent and coming down only slowly. And then Mitch McConnell says “See, government spending doesn’t work.”
http://krugman.blogs.nytimes.com/2009/01/06/stimulus-arithmetic-wonkish-but-important/
Badeye posted on 2011-04-29 10:30:22 ET
#4. To: go65 (#3)
In reality, the last 10 years should be the final nail in the coffin of those who think tax cuts will lead us to prosperity.
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#5. To: mininggold (#2)
....I'm still waiting for that trickle down to get here
#6. To: no gnu taxes (#0)
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#7. To: jwpegler (#6)
The final nail was driven into the coffin of Keynesian economic theories in the 1970s when we had hyperinflation at the same time we had a recession. Keynesian theories (specifically the Philips curve) said that this was impossible.
#8. To: jwpegler (#6)
The final nail was driven into the coffin of Keynesian economic theories in the 1970s when we had hyperinflation at the same time we had a recession.
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#9. To: mininggold (#7)
(Edited)
I guess you were too young to experience those Nixon/Ford even/odd fill up day gas lines.
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#10. To: jwpegler (#9)
Nixon was a Keynesian who took us off the gold standard and imposed wage and price controls.
#11. To: mininggold, capitalist eric (#10)
We had those long gas lines because the oil companies decided to slow gas production until the prices
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#12. To: jwpegler (#9)
(Edited)
Wage and price controls is why we had those long gas lines.
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#13. To: jwpegler (#11)
Europeans were affected by the Arab oil embargo too, yet they did not experience shortages and long gas lines
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#14. To: jwpegler (#11)
(Edited)
Gas wasn't the only shortage that Nixon caused with his wage and price controls. We also had shortages of beef, potato chips, and even toilet paper. All of the shortages disappeared when the price controls were lifted.
#15. To: war (#12)
(Edited)
Both of these occurred AFTER price controls were lifted
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#16. To: mininggold (#14)
I see when cornered
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#17. To: jwpegler (#15)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#18. To: jwpegler (#16)
I'm not the one who is corned here.
#19. To: war, jwpegler (#17)
Oil had a two tiered price market...price on oil produced prior prior to the end of 1972 was limited to the March 1973 price +35 cents and anything produced AFTER 1973 or from a new well that came into existence from 1972 on was uncontrolled.
#20. To: mininggold (#19)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#21. To: mininggold (#19)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#22. To: war (#21)
(Edited)
Nixon should have took them to task over it. At the time, Iran could have alleviated the shortfall.
#23. To: mininggold (#22)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#24. To: war, mininggold (#21)
BTW, Iran, which was supposed to be our ally and a nation to which, despite its own riches, we propped up with agriculture credits and subsidies, went along with the embargo. Nixon should have taken them to task over it. At the time, Iran could have alleviated the shortfall.
#25. To: Godwinson (#24)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#26. To: jwpegler (#16)
#27. To: Capitalist Eric (#26)
By that logic, I wish they would either grow up, or just DIE.
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#28. To: jwpegler (#27)
#29. To: jwpegler (#27)
At some point the free loader generation will die. Then the country can move ahead.
Badeye posted on 2011-04-29 10:30:22 ET
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