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.
