Keynesian Economics Is Wrong: Bigger Gov’t Is Not Stimulus

There is an evil wind blowing across the country. And you need to watch.

As Steve points in his most excellent post, and as I pointed out in posting this Neil Cavuto video, now that Obama has let it be known he intends to spend trillions of dollars, ostensibly to pull the nation our of its recession, cities and states across the country have decided to join the Neo-Keynesian movement, using it as an excuse to tax and spend us into prosperity. It does not, nor has it ever worked. Ever. From Michelle Malkin’s site … please visit. Oh and take the time to read the comments.

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I’ve been telling you guys this for years. As Milton Friedman explained, government spending can be a temporary panacea, making people feel good for a while. But government spending does little more than provide make work work for the short term. Long term wealth and prosperity for all can only be created in the markets by the markets. Ironically Friedman points out here that even Keynes never intended government work programs to be permanent. Only temporary. Government can do little except print money. It’s “dead end” money. It neither creates jobs nor wealth.

3 replies
  1. Wayne SW
    Wayne SW says:

    The panecia is alive and well in the Obama socialist movement. This feel good, time for a change platform will prove to be a collosal failure, known only to the true economists. The Sheeple, led by the MSM will enthusiasticaly keep drinking the Kool-Aid. After several years of self-annointed bliss, the Sheeple will soon realize that getting by with less is not what they signed up for.

    We need a Regan to lead us through Carter, Phase II.

  2. russ
    russ says:

    money as any other commodity loses
    value with increased supply
    If you really want to help you need to decrese supply as you then increase value aka more bang for your buck

  3. Erik from WH
    Erik from WH says:

    You know I couldn't agree more.  Keynes is rolling in his grave. I liken this perversion of Keynes' theories to the radicals that use Islam as an excuse to kill people.

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