The View From 1776
Monday, May 24, 2010
Keynesian Obamanomics has delivered the weakest economic recovery in many decades, and the recovery appears to be fading as temporary Federal spending dries up.
It appears ironically that upper income people benefitted most, via the recent stock market surge, from the Democrat/Socialist Party stimulus spending, funded by the Fed’s flooding the market with trillions of dollars of fiat money.
The Fed’s inflationary expansion of the money supply, of course, was induced by Obama’s reprise of Franklin Roosevelt’s completely unsuccessful “pump priming” deficit spending in the Depression. Both then and recently economic recession resulted from farmers and businesses over expanding, because of easy credit floated on fiat money, created out of thin air, by the Federal Reserve.
The “stimulus” has simply delayed economic recovery, which necessarily requires clearing the market of excess inventories, including housing, paying down debts, and resumption of personal and corporate savings as the source of future job creation. No matter how many magic wands Keynesian state planners wave for Obama, they will continue to make the situation worse and push the United States closer to stagflation and loss of the dollar’s status as the international reserve currency.