Comments on: How would Keynes advise Obama on jobs? Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: Externalities Thu, 08 Sep 2011 22:10:40 +0000 “Keynesianism/Central Economic Planning and the Federal Reserve are to blame for the economic crisis. ” – EyesofVigilance

Really, because I thought Supply-Side Economics had been pretty much dominating Washington for the past 30 years? You remember, Voo-Doo economics. That’s where everything gets deregulated (like banks, OTC trading, derivatives markets, etc) and corporation get huge tax breaks so they can more easily hire and produce. Then, the rewards were supposed to rain down on the middle-class and poor. A trickle down effect as some would say.

What has the REAL outcome been?? Three near collapses of financial markets in less than 25 years due to unregulated greed (Saving & Loan, Long-Term Capital, and the TARP bailout). Of course all three collapses were avoided thanks to massive tax payer bailout programs. Oh, and let’s not forget stagnate wage growth for the middle and lower classes.

By: Externalities Thu, 08 Sep 2011 21:53:15 +0000 “WWII, not Keynes, pulled the world out of the Great Depression, but clever fools (someone who lacks common sense) keep banging the stimulus drum.”

Common sense would tell you that WWII spending was, in fact, MASSIVE federal stimulus spending. Keynesian efforts were helping some in the late 1930’s, but it simply wasn’t enough. Once the war started the US Government dramatically increased its spending efforts which lead to the dramatic economic turnaround. Who did you think was paying for all those tanks and bombs??

Of course that was back when Americans were actually willing to sacrifice a little for the sake of country by accepting federally imposed rations (What would now be called Socialism) and buying war bonds (What would now be called wasteful liberal spending).

By: Poeboy Thu, 08 Sep 2011 21:08:28 +0000 The problem with Keynesian theory is the greedy politicians have used it as a crutch in both good times and bad. When times are good, they bring home the pork to build a bunch of unneeded bike paths and convention centers all around their communities, and then when times are bad they want to build even more bike paths and convention centers under the misguided perception that seeding the local economies with borrowed tax dollars will somehow magically create wealth and make life rosy.

Who benefits from Keynesian spending? Thuggish public employee unions, crony construction contractors, and holders of tax free muni bonds. Not many others. Certainly not those who pay taxes.
I know. I live in a state that is littered with empty convention centers and unused bike paths. We also have a tunnel under our state capital that cost $18BN to build and is of such poor quality that it’s leaking and falling apart three years after opening. Our problem in Massachusetts is that working taxpayers are vacating the state. State party leaders (all Democrats) keep praying that “Keynesian” style block grants from the Fed will pay their bondholders and keep all the party hacks safely ensconced in their phony baloney government jobs.
It’s bad theory from the start. Why? Because those who command the checkbook are not acting in the best interests of the economy or their constituents. Public officials cannot be trusted to do anything properly.

By: FBreughel1 Thu, 08 Sep 2011 19:44:00 +0000 Keynes’ theory is dead in case the government has NO money to stimulate. It has been proven by Japan and now by the USA.
What on earth is one thinking when overspending THREE year in a row an average of 10 % of GDP per year !? Does one have no shame, no self-discipline ? It is ruining the USA into debt.

Trust, I repeat TRUST in a decent government would have helped the US economy a lot more than this sword of Damocles hanging above this government going to default!

By: eleno Thu, 08 Sep 2011 19:07:46 +0000 Beware the spurious argument that the stimulus was not enough – 1 Trillion dollars is not enough?

What then constitutes ‘enough\': 5 trillion, 10 trillion, why not given every person in the US a million dollars each. That should rev up the economy.

The fact is that Keynesian economic has been tested and found wanting. WWII, not Keynes, pulled the world out of the Great Depression, but clever fools (someone who lacks common sense) keep banging the stimulus drum.

Fiscal rectitude and governmental expense controls will go a long way to send the message that the US is serious about financial reform – and globally business and the markets will respond accordingly.

By: Inquisiturient Thu, 08 Sep 2011 19:00:17 +0000 I like the government and trust it to do what is good for the country, at least for the majority of it.

By: EyesofVigilance Thu, 08 Sep 2011 17:09:41 +0000 Keynesianism/Central Economic Planning and the Federal Reserve are to blame for the economic crisis. Remember Nixon… “we’re all Keynesians now.” Well, we are all Keynesians and we’re broke, don’t produce enough, and are the edge of a total collapse of the economy. The government cannot spend our way out of this problem. Even if the government increased spending, surpassing the amount in all the stimulus/bailouts, and it put money in the hands of the people and they spend it; that still wouldn’t work. If the government spends money when it has no money to spend (we are in debt and broke) then the Federal Reserve will create the money needed through various actions. The result will be an even more weak/devalued dollar. So what if we start handing out money; when the money isn’t worth anything it won’t matter. It’s very sad that the government as a whole doesn’t really show signs of changing our bad Keynes/Central Economic Planning. They shows signs of wanting to continue the same actions that they have been taking and then they will once again be surprised that what they are doing is still not working. Of course, many in government will say, just as Keynes would suggest that they just didn’t do/spend enough. So round and round we go… doing the same thing and expecting results. The best thing government can do at this point is JUST STOP. We don’t want your help. Cut taxes, end our unsustainable foreign military presence around the world, and leave us the hell alone!!

By: JWilliams320 Thu, 08 Sep 2011 16:48:34 +0000 Be bold. Do what the Republicans say. This is the author’s idea of being bold? Rick Perry says government spending does not create even one job so that makes a public works program a non-starter? Perry also doesn’t believe in evolution so, by the author’s logic, evolution is not true.

Obama needs to be bold and call out the Republicans ignorance on economic matters and apply all three of the Keynesian approaches: low interest rates, tax cuts, AND public works spending. Now is not the time to worry about the deficit.

By: TheCageNovel Thu, 08 Sep 2011 16:39:14 +0000 Regarding tax cuts….in the ’60s, both personal and corporate taxes took a much bigger bite. Considering that and the present enormous consumer debt overhang, it’s a little hard to believe that tax cuts today would lead to anything like the kind of demand increase they did then, and they would be terribly difficult to reverse later. In fact, the Norquist/Tea Party insurgents would likely use the lower revenue to force further spending cuts.