The View From 1776

Once Again Stimulus Spending Doesn’t Work

Why did Keynesian economics fail to produce advertised results?

Posted by .(JavaScript must be enabled to view this email address) on 01/31 at 01:29 AM
  1. The economy is, in fact, turning around, albeit too slowly - mostly because the stimulus was too small.
    Posted by .(JavaScript must be enabled to view this email address)  on  01/31  at  11:00 PM
  2. harrumph! That's what I thought about the Bush tax cuts. They were too small to be expected to have much effect. Ditto Japan's "stimulus" spending in the 1990s -- it was about the same amount, after adjustment for inflation as Hoover's stimulus spending in the early 1930s.

    But on additional consideration and observation of the results of these bouts of stimulus spending, it appears that it has no positive results at all. Only the favored few get direct subsidies at the expense of the rest of the populace. Heck, tens of billions of it went almost directly over-seas -- to European financial institutions and to Red China (including manufacturers of "alternative energy" equipment).

    Standing back, once again, to examine the actual economics, it's obvious that, all things considered, it merely increases the mal-spending, and mal-investment, reducing the net quality of living of the citizenry... just as the Austrians told us would be the case.
    Posted by .(JavaScript must be enabled to view this email address)  on  02/01  at  08:45 AM
  3. It is true that a lot of the stimulus spending went to non-stimulative recipients - which, of course, confirms that the amount of "true" (net) stimulus spending was too small - even smaller than the dollar amount of the bill.

    The politicians (Democrat and Republican) shaped the contours of the stimulus bill, and to get it passed, there was a lot of lard tacked on. But without any stimulus bill, we would all have been selling apples on the corner.
    Posted by .(JavaScript must be enabled to view this email address)  on  02/01  at  02:23 PM
  4. My, my, my! Such a torrent of words to damn evolution, Keynesianism, progressive thought, abortion, etc., etc, - and to realize that they are all part of the same nefarious plot! This sounds a lot like Glen Beck, who has a gift of tying every little thing he notices, iPhone Cases
    no matter how trivial, into a giant conspiracy theory.
    Posted by looisbrown  on  02/10  at  10:54 PM
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