Bury Keynesian Voodoo Before It Can Bury Us All

[healthpellets]

http://www.bloomberg.com/news/2010-0...n-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]

Good attempt by the author to re-brand voodoo economics as a Democratic, Keynesian term.

Originally Posted by healthpellets

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]

Originally Posted by Pittsie

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]

Originally Posted by healthpellets

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]

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]

Originally Posted by mikey23545

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]

Originally Posted by healthpellets

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]

Originally Posted by healthpellets

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

Not really, no.

Where are we at on the Laffer curve?

[healthpellets]

Originally Posted by Pittsie

Not really, no.

Where are we at on the Laffer curve?

this is NOT laffing matter.

[King_Chief_Fan]

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]

Originally Posted by King_Chief_Fan

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]

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]

Originally Posted by Bwana

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]

Originally Posted by Chief Henry

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]

Originally Posted by Bwana

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