Economic Growth, Part I: Keynesian Economics Does Not Work
by Dan MitchellThe White House recently began claiming that the “Recovery Act” had “created or saved” 640,000-plus jobs. This was a political mistake, since the “jobs saved” measure allows for creative accounting. But the White House also erred by providing (supposed) details, making it very easy for reporters to do a bit of fact checking, which has generated a spate of stories showing that the White House’s numbers are wrong, even using make-believe methodology. The Washington Examiner has put together a very useful interactive map which links to many of the news reports debunking the Administration’s fraudulent numbers. With the White House now talking about a second stimulus (though it appears they will call it a jobs bill), it’s time to remind ourselves with a three-part series that government spending is not stimulus. Part I is this video debunking Keynesian economics.
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[...] This post was mentioned on Twitter by Vince Humphreys, Michael Chavez, Big Government, Big Government, Patrick Henry and others. Patrick Henry said: Economic Growth, Part I: Keynesian Economics Does Not Work: The White House recently began claiming that the “Rec… http://bit.ly/5p3xAi [...]
Everyone should watch the interactive video, it's amazing. http://www.washingtonexaminer.com/maps/Bogus-jobs...
As a businessman, I have created jobs, but do not comprehend the governmental concept of "saving" jobs. Perhaps that phenomenon only relates to government paper pushers.
We have 18% real unemployment. The only jobs Hussein attempted to save were on Wall Street and union jobs. He gave the private sector the middle finger, which is what he's getting in 2012. If Republicans have a landslide in 2010 Hussein can look forward to impeachment and a full investigation into whether he's eligible to be president. If he's not eligible this will be the greatest fraud ever perpetrated. A serious nation would hang such a criminal.
Look for Barry to double down on stupid, Keynesian Economics.
Lets see if I have this straight, from the interactive map here:
Dupuyer, MT
Last Updated by charlie.spiering 3 days ago
The Dupyer School district got a $2296 grant for a new septic system that saved or created two jobs. At $1,148 nobody's job was saved or created with any permanence.
Jobs not saved: 2
Source Recovery.gov
S, with this 700 Billion dollar stimulus package, Montana got a new septic tank for the school over in Dupyer? What a bunch of shit…………
Statists are unmoved by reality
Just another reason we all need to learn the Constitution. Everyone please check out these FREE resources on http://www.AmericanCitizens.org and tell as many people as possible. Watch video classes on the Constitution and download the Constitution to MP3. It is getting VITALLY IMPORTANT folks that we take some time to learn the Constitution. It's not good enough anymore to just to say something is not constitutional unless we understand why.
Please enjoy this Very Funny But Deadly Serious video entitled "Is this you" http://americancitizensorg.wordpress.com/is-this-...
Keynes, Digger of Holes
No one should trust a theory that predicts greater prosperity from digging holes. Yet, this is the theory by Keynes that Obama is following, and many past presidents have followed, to forcibly change our society. We will supposedly create even more wealth in the future by wasting our current wealth today.
I know. I must be wrong. No one could believe such a thing. Certainly no President of a great country would listen to a dead crank who spouted such nonsense. But, there it is.
There is a story at the link about Keynes dirtying some towels in a washroom and claiming that he had just helped the economy.
How many obviously false statements must a person make before the quality of his entire thought is in question? The limit has not yet been set for government economists and politicians.
Let's Counterfeit Our Way to Wealth
Team Obama claims that every dollar in stimulus creates $1.50 in wealth. This is economic fiction. The costs of the stimulus reduce future growth. As we see now, the so-called stimulus isn't even very stimulating in the present, because it has gone/will go to government consumption, and the threat of future taxes puts people out of work now.
The 1.5 wealth multiplier is ludicrous. It is the Keynesian myth of distributing money to promote a recovery. As a counterexample, if it were true, then the government could license counterfeiting and we would all become rich. Actually, the government attitude toward printing money is very close to counterfeiting.
Consider that the government has been spending money wildly for 20 years. If government spending produced lasting prosperity, then we should all be rich already. The housing boom, financed by government borrowing and guarantees, was a period of substantial, increased spending. Where is our lasting prosperity now?
The only cure for Keynes is Ludwig von Mises and the "Austrian School" of Economics. The best place to learn about it is at http://mises.org
There is also a great article there about Keynes and the fact that his policies lead to a more and more totalitarian state:
http://mises.org/story/3693
Pelosi publicly stated that "every month that we do not have an economic recovery package 500 million Americans lose their jobs."
Read more: http://www.nypost.com/p/news/politics/item_gPtx1N...
Keynesian Economics = Communism! That's why Obama loves it….
Que viva Obama!
Que viva el desempleo!
Que viva el gobierno corrupto y ladron!
Paguemos mas impuestos!
Que viva los zurdos y barbudos de porqueria!
You are wrong. As a real economist, The Mises model has never been implimented. Not a single couuntry. Tere is no country as backward today that a model from 100 years ago pre industrial would work.
People that peddle that model haven't taken modern econ classes.
Idiots belive plowing with horses would work better than using tractors. Idiots that push Mises are uneducated. in business.
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Keynes, Kerry, and Krugman: bringing the torches and the hemp hangin’-rope to a free market near you.
From a recent post:
Paul Krugman, that supremely educated fluffer for the left, is opining that $800 billion in stimulus was not enough. We need more, more, more or your kids will go hungry. The free-market, after sustaining us for two hundred and thirty-three years, is incapable of sustaining you. The fact that one individual might make four dollars more a year than the next person is akin to the holocaust. Paul tells you that John Maynard Keynes was really right all along. Since 1932 the U.S. has adopted wholeheartedly the Keynsian pump priming model and has expected a multiplier effect. But is it really true?
There is ample evidence to the contrary, but pay no attention to the man behind the curtain.
For More, See:
http://thanksforthelaughs.wordpress.com/2009/11/0...
Lazy Jack
And not even a t-shirt to go with! LOL!
Have you ever even studied the Austrian Business cycle? I mean you could at least make a convincing argument as to why it is so backwards and unworkable. It is not predicated on any preconception that an economy is driven by oxcarts and such as you so eloquently suggest. In fact, Keynesians might be more likely to suggest more primitive work methods and "make work jobs" in order to create "more full employment". Austrians have never advocated any such thing.
Mises successfully predicted the Great Depression when all of the 'modern' economists said that the roaring '20s would continue indefinitely and it was a "new economic age". F.A. Hayek won the Noble Prize for his work that proved that the Central Bank causes the boom/bust cycle. Austrians such as Peter Schiff, Tom Woods, and Ron Paul predicted the current crises as early as 2003 when establishment economists such as Bernanke and Krugman and all those other "moder econ classes" people were dead wrong (as they usually are). I know whose toothpaste I'm buying.
There is a great article by Henry Hazlitt called "Understanding Austrian Economics" at http://mises.org/story/3561. I think you will find it is not what you think it is and all it will cost is your time to read it. If you want to go further there are many great books in the mises.org store. A great starting book on Austrian economics is "Economics in One Lesson" also by Hazlitt and available in the mises.org store for a very low price.
Keynesian Economics? Ludwig von Mises and the "Austrian School" of Economics? Those are theory.
I do not claim to be an educated, or abnormally smart person, but I did learn that 1+1=2. That is a mathematical fact, and all math is based upon fact, not supposition. That is the elementary building block, a simple FACT.
With a red pen and a ninth grade education, I could balance the budget.
Sorry link doesn't work. Here it is again
http://mises.org/story/3561
Thanks for this video. I appreciate that someone is actually explaining the real situation.
Politicians not only like spending other peoples money; they like stealing it more.
Not only is Mises right. But, contrary to Freedie saying it has never been implemented, Mises shows you were it had been and it is in our country during the most productive time in our history, the mid to late 19th century. Freddie should also like to know that the term Liberal applied in those days to Democrats who were staunch Gold based non central banking politicians. It was not until the extremely late 19th and first 30 years of the 20th that things took turns for the worse.
I can't wait for our idiot max Baucus to run for r-election on the "jobs-created-saved" platform. I'm going to ask him how the new septic system is working out in Dupuyer. Just what every school needs, is a new shitter. They could have rented a porta john and gave the locals something to use for target practice.
Thank you
Honestly, sometimes I feel like I'm alone screaming into the wind!
That is because opinion is not fact or fact related to history. I have been on Mises and the Fed and am not a Ron Paul fanatic. But I do look for truth, logic and an appreciation of history. You are definitely not alone!
Ken
If Keynesians watch this video, their head just might explode.
Economists… Climatologists… Cooked numbers are cooked numbers, what difference does it make?
"a model from 100 years ago pre industrial would work."
Excuse me? Mises was a contemporary of Keynes, and worked until 1940 in Austria and Switzerland and from then until 1973 in the US. "Pre-industrial?"
The Keynesian Multiplier is like the Higgs Boson- neither has ever actually been observed. The difference is that the Higgs might exist.
And, it's very insulting for them to believe that we are ALL stupid enough to believe everything they say!!!
This is getting to be such a daily thing…I'm just speechless at the 'audacity' of it all!!!
Just contrast Obama's beautification of the New Deal (this time on steroids) with the real-world Reagan Recovery of the 1980s… which actually brought us back from 11% unemployment plus double-digit inflation AND interest rates.
This was accomplished through an adherence to the teachings of Milton Friedman- implementing spending and tax cuts, in addition to deregulation and incentives for small businesses and entrepreneurs- all aided by his sunny optimism and complete faith in the American free-market-enterprise system- this is all of course 180-degrees from what Obama's trying to foist on us.
Reagan created over 20M jobs, growing Real GDP by almost 30% in the process… and giving this country eight of the best years it's ever seen.
Those kind of results makes one wonder why Obama’s multi-trillion-dollar spending would impress anybody, with his pledged 3M new and “saved” jobs (whatever those are)… a paltry figure 17M shy of Reagan’s impressive accomplishment.
And it's quickly become obvious that Obama's empty pledges can't be delivered upon anyway, unemployment is soaring…
http://reaganiterepublicanresistance.blogspot.com...
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[...] not predicated on any preconception that an economy is driven by oxcarts and … Read more: Big Government » Blog Archive » Economic Growth, Part I: Keynesian … Share and [...]
Keynesian Economics? Don't you mean Keystonian, as in the Keystone Cops? Everything these socialist bastards do is a joke and it would be funny if it wasn't so sad and dangerous. My God, NO_Bama cant even give a good speach at West Point. That speech was schizophrantic !
I have been reading and reading and reading to arm myself with the truth. The more I read the madder I get. These people are destroying our country, nay, the world ! May they all rot in hell !
We are in BIG trouble, very BIG trouble inded. We need to mobilize and soon to stop these crazy sons of bitches.
[...] the rest here: Big Government » Blog Archive » Economic Growth, Part I: Keynesian … Share and [...]
The "jobs saved" garbage is almost as big a crock as global warming is. Nothing but lies, damn lies and statistics.
I hear the "JAWS" soundtrack playing in the background……
Keynesian economics not work?
Pish and tosh! It work for everything!
Like:
THE BARACK OBAMA DIET PLAN
http://naturalfake.wordpress.com/2009/11/28/the-b...
It's science!
Rule #1: Do not provide your enemies details they can use to discredit you. Clearly in this case the enemy of the Administration is the truth, or any thinking person that can easily spot a fraud. I still want to know who in the Administration came up with the idea of "jobs created or saved" and whether they have been tarred and feathered yet. The liberal mind has an endless capacity to invent facts to fit their view of the wold (see climategate for another example). Join the fight to take back America from an out of control government at http://www.GrassRootsNation.com.
Rule #1: Do not provide your enemies details they can use to discredit you. Clearly in this case the enemy of the Administration is the truth, or any thinking person that can easily spot a fraud. I still want to know who in the Administration came up with the idea of "jobs created or saved" and whether they have been tarred and feathered yet. The liberal mind has an endless capacity to invent facts to fit their view of the wold (see climategate for another example). Join the fight to take back America from an out of control government at http://www.GrassRootsNation.com.
Even when I was in grad school in economics over 35 years ago the professors snickered a bit when they were explaining Keynesian Economics.
I would have thought today the odds of anyone taking this seriously would be about equal to the number of neurosurgeons who planned to operate on the id, the ego, or the superego.
[...] to ignore reality just as Dorothy and friends were supposed to ignore the man behind the curtain. A previous post included a video explaining why Keynesian economics was theoretically flawed. This video [...]
[...] learned that Keynesianism does not make sense and that Obama’s so-called stimulus was misguided. In the final installment of this three-part [...]
Dan,
Thanks for the education on the fraud that is Keysian theory. It's not surprising, after learning about the destructiveness of so many liberal icons (FDR, the new deal, Social Security, etc.).
I think Tiger had the Keynesian theory on "How to have a good Marriage"
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