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View Full Version : Economics Bury Keynesian Voodoo Before It Can Bury Us All


healthpellets
08-23-2010, 10:56 AM
http://www.bloomberg.com/news/2010-08-23/bury-keynesian-voodoo-before-it-can-bury-us-all-kevin-hassett.html

Initial claims for unemployment benefits surged to 500,000 in mid-August, a level more typical of a recession than a recovery. The bad news confirmed what conservative economists have been saying for some time: The biggest Keynesian stimulus in U.S. history was a bust.

Incredibly, some Keynesians who supported Barack Obama’s $862 billion stimulus now claim it fell short of their goals not because the idea was flawed, but because the spending package was too small. Christina Romer, the departing chairman of Obama’s Council of Economic Advisers, has become a minor cult hero to the Keynesians, thanks to news reports that said her analysis in 2009 suggested the stimulus should be in the range of $1.2 trillion, or 40 percent larger than it turned out to be.

If the economy is in deep trouble, there are two economic policy steps that one could take in order to create a positive stimulus: reduce tax rates, or spend more money. (The so-called tax cuts in the 2009 stimulus had little effect because they were primarily credits and deductions, rather than reductions in marginal rates.)

But notice the problem for the Robin Hooders: If you cut tax rates in a recession in order to stimulate the economy, then you are conceding that lower tax rates can be a good thing. And if that’s true, then higher tax rates will be harmful -- something the left has always denied.

Cave Johnson
08-23-2010, 11:00 AM
Good attempt by the author to re-brand voodoo economics as a Democratic, Keynesian term.

But notice the problem for the Robin Hooders: If you cut tax rates in a recession in order to stimulate the economy, then you are conceding that lower tax rates can be a good thing. And if that’s true, then higher tax rates will be harmful -- something the left has always denied.

This author is a moron. There's a material difference between, say, the impact of payroll taxes vs. the highest marginal income rate.

healthpellets
08-23-2010, 11:15 AM
Good attempt by the author to re-brand voodoo economics as a Democratic, Keynesian term.



This author is a moron. There's a material difference between, say, the impact of payroll taxes vs. the highest marginal income rate.

isn't that pretty much what we're talking about?

mlyonsd
08-23-2010, 11:21 AM
isn't that pretty much what we're talking about?

Typical liberal class warfare. Give the impression someone else will always pick up the tab. Screw those dam rich people.

mikey23545
08-23-2010, 11:33 AM
Incredibly, some Keynesians who supported Barack Obama’s $862 billion stimulus now claim it fell short of their goals not because the idea was flawed, but because the spending package was too small. Christina Romer, the departing chairman of Obama’s Council of Economic Advisers, has become a minor cult hero to the Keynesians, thanks to news reports that said her analysis in 2009 suggested the stimulus should be in the range of $1.2 trillion, or 40 percent larger than it turned out to be.

Sweet Jeebus.

healthpellets
08-23-2010, 11:50 AM
Incredibly, some Keynesians who supported Barack Obama’s $862 billion stimulus now claim it fell short of their goals not because the idea was flawed, but because the spending package was too small. Christina Romer, the departing chairman of Obama’s Council of Economic Advisers, has become a minor cult hero to the Keynesians, thanks to news reports that said her analysis in 2009 suggested the stimulus should be in the range of $1.2 trillion, or 40 percent larger than it turned out to be.

Sweet Jeebus.

they have no ideas besides spend, spend, spend. and they'll never admit it didn't work. so what else are they gonna say besides we didn't spend enough.

had we spent $1.4T, it wouldn't have worked. well, then we should have spent $2T instead.

mikey23545
08-23-2010, 11:56 AM
they have no ideas besides spend, spend, spend. and they'll never admit it didn't work. so what else are they gonna say besides we didn't spend enough.

had we spent $1.4T, it wouldn't have worked. well, then we should have spent $2T instead.

Yeah, but Greece was on the right track until they ran out of money...

Cave Johnson
08-23-2010, 12:04 PM
isn't that pretty much what we're talking about?

Not really, no.

Where are we at on the Laffer curve?

healthpellets
08-23-2010, 12:09 PM
Not really, no.

Where are we at on the Laffer curve?

this is NOT laffing matter.

King_Chief_Fan
08-23-2010, 12:21 PM
I suspect the jobless rates are a lot higher than reported.
Note, that they don't report the folks out of work and out of benefits. They assume, if they aren't filing or drawing benefits, people are working.

healthpellets
08-23-2010, 12:25 PM
I suspect the jobless rates are a lot higher than reported.
Note, that they don't report the folks out of work and out of benefits. They assume, if they aren't filing or drawing benefits, people are working.

thought i just read yesterday that if we used the same way to calculate unemployment as they did during the great depression we'd come up with 25%-30% unemployment.

Bwana
08-23-2010, 12:27 PM
How much more "Hope and Change" can this country take? Thanks Barry! On a side note, check out the Obama bumper stiker removal kit. :)

http://www.youtube.com/watch?v=jYYIzMQLHyA&NR=1

Chief Henry
08-23-2010, 01:14 PM
How much more "Hope and Change" can this country take? Thanks Barry! On a side note, check out the Obama bumper stiker removal kit. :)

http://www.youtube.com/watch?v=jYYIzMQLHyA&NR=1




Last Friday August 20th the FDIC closed/took over 8 banks...

Thats a total of 118 just this year alone. The Hope and Change is

is taking its toll on our country.

Cave Johnson
08-23-2010, 02:06 PM
Last Friday August 20th the FDIC closed/took over 8 banks...

Thats a total of 118 just this year alone. The Hope and Change is

is taking its toll on our country.

That Barry guy needs to quit shuttering insolvent banks and handing out pink slips. What an a-hole.

Also, remember the guy that wanted to suspend his campaign in Sept. 08 when the economic shit hit the fan? I bet he'd be way better at this.

mikey23545
08-23-2010, 02:33 PM
How much more "Hope and Change" can this country take? Thanks Barry! On a side note, check out the Obama bumper stiker removal kit. :)

http://www.youtube.com/watch?v=jYYIzMQLHyA&NR=1

LMAO

Chief Henry
08-23-2010, 02:46 PM
That Barry guy needs to quit shuttering insolvent banks and handing out pink slips. What an a-hole.

Also, remember the guy that wanted to suspend his campaign in Sept. 08 when the economic shit hit the fan? I bet he'd be way better at this.

:deevee:

Chief Henry
08-25-2010, 10:38 AM
We are now living and experiancing real voo doo economics.

Saul Good
08-25-2010, 12:33 PM
Incredibly, some Keynesians who supported Barack Obama’s $862 billion stimulus now claim it fell short of their goals not because the idea was flawed, but because the spending package was too small. Christina Romer, the departing chairman of Obama’s Council of Economic Advisers, has become a minor cult hero to the Keynesians, thanks to news reports that said her analysis in 2009 suggested the stimulus should be in the range of $1.2 trillion, or 40 percent larger than it turned out to be.

Sweet Jeebus.

You've got to admire their balls. It's like an au pair saying that the baby is dead because she didn't shake it hard enough.

healthpellets
08-25-2010, 01:10 PM
You've got to admire their balls. It's like an au pair saying that the baby is dead because she didn't shake it hard enough.

that's going in my sig.

BucEyedPea
08-25-2010, 02:33 PM
Keynesianism is dying.....even Bernanke is looking more and more worried as well as the body of the Federal Reserve who don't have a clue. They're delusional to see reality which is that the mechanics of their system are designed to fail.

googlegoogle
08-25-2010, 03:38 PM
It's almost as if the gov creates a 'crisis' state of mind which in turn makes people want to save more. Like some kind of negative feedback.

And they will never give up on Keynesian economics.

Hog Rider
08-25-2010, 04:26 PM
Spend us into oblivion, then declare an emergency and take over everything that fails.