Can Fiscal Stimulus Revive the U.S. Economy?

[Kevin_Kennedy]

Most economists and various commentators are in agreement. They hold that the US government must sharply increase its spending in order to arrest the economic crisis that could turn into a prolonged slump.

Can Fiscal Stimulus Revive the US Economy? - Frank Shostak - Mises Institute

 

[Paulie]

Can Fiscal Stimulus Revive the US Economy? - Frank Shostak - Mises Institute

The bread baker analogy explains the process at an elementary level so everyone can understand what's going on.

I'm sure there will still be people coming along to challenge it in the face of the facts, though. Why? As Toro says, ideologists vs. empiricists.

 

[Red Dawn]

Can Fiscal Stimulus Revive the US Economy? - Frank Shostak - Mises Institute

Some guy from the "Ludwig Von Mises" Institute? Never heard of it.

Can you please explain to me why, every developed country on the planet is pursuing keynesian fiscal stimulas right now?

If these Baron Von Ludwig dudes are correct, and their argument so compelling and convicing, why are they being roundly ignored? (Please, rational answers only, no conspiracy theories about an international collusion against libertarians).

Thanks.

Japan, Germany, Canada pledge new stimulus packages

Japan, Germany and Canada pledged new measures overnight to confront a financial crisis that has toppled banks, endangered the global auto industry, and now played a part in the demise of Belgium's Government.
Japan, Germany, Canada pledge new stimulus packages - ABC News (Australian Broadcasting Corporation)

China Weighs Economic Stimulus Plan
BEIJING - Chinese leaders began weighing possible plans Monday to expand a massive stimulus package with higher spending on health and social programs amid signs an economic slowdown is worsening
msnbc.com

Netherlands Rolls out Economic Stimulus Package
The Dutch government announced on Friday a six billion euro (7.5 billion dollar) economic stimulus package to help the country cope with the global financial crisis.

France 24 | Dutch govt rolls out €6bn stimulus package | France 24

Sweden unveils $2.8B 3-year economic stimulus plan
- Boston.com
Dec 5, 2008 ... The Swedish government on Friday presented a three-year 22.9 billion kronor ( $2.8 billion) economic package to stimulate employment and ...

$30 Billion Stimulus Announced In Britain
Plan Cuts Sales Tax, Boosts Borrowing for Major Public Projects

British Leaders Announce $30 Billion Stimulus Package - washingtonpost.com

 

[Zoomie1980]

Some guy from the "Ludwig Von Mises" Institute? Never heard of it.

Can you please explain to me why, every developed country on the planet is pursuing keynesian fiscal stimulas right now?

If these Baron Von Ludwig dudes are correct, and their argument so compelling and convicing, why are they being roundly ignored? (Please, rational answers only, no conspiracy theories about an international collusion against libertarians).

Thanks.

One has to wonder who is loaning the money for all these stimulus programs? It used to be China, but they are about tapped out. So who else is cash heavy enough to float loans to all these stupid fools?

 

[Kevin_Kennedy]

Some guy from the "Ludwig Von Mises" Institute? Never heard of it.

Can you please explain to me why, every developed country on the planet is pursuing keynesian fiscal stimulas right now?

If these Baron Von Ludwig dudes are correct, and their argument so compelling and convicing, why are they being roundly ignored? (Please, rational answers only, no conspiracy theories about an international collusion against libertarians).

Thanks.

Did you have anything to say about the article or did you just want to spout nonsense?

 

[Diuretic]

Did you have anything to say about the article or did you just want to spout nonsense?

Can I have an each way bet?

Just a question though. If Keynes isn't the way to go, what is and why?

 

[Kevin_Kennedy]

Can I have an each way bet?

Just a question though. If Keynes isn't the way to go, what is and why?

My answer should be obvious, but the Austrian way is the way to go. The Austrians realize that the recession is necessary because it is the time where the market attempts to correct itself.

 

[Diuretic]

My answer should be obvious, but the Austrian way is the way to go. The Austrians realize that the recession is necessary because it is the time where the market attempts to correct itself.

What happens if the market fails in its attempt to correct itself?

 

[Kevin_Kennedy]

What happens if the market fails in its attempt to correct itself?

I'm not sure what you mean.

 

[Red Dawn]

My answer should be obvious, but the Austrian way is the way to go.

The Austrians realize that the recession is necessary because it is the time where the market attempts to correct itself.

The Austrian Government has proposed and is implementing a massive economic stimulus package that includes spending on infrastructure, road, rail and other public works. Specifically to address unemployment and the financial meltedown.

"Economic package: Chancellor Faymann expects 8 billion euros"
News from Austria : Federal Chancellery of Austria


So, I don't think its accurate for you to say "The Austrians" are employing your theores of antiquated lassaize faire capitalism.

Maybe your Baron Von Ludwig Institute is promoting that. But Austria as a nation and government isn't.

Why do you think the Austrian government is employing Keynsian stimulus? I'd love to hear your theories on why the Baron Von Ludwig Institute is being totally ignored.

 

[jillian]

What happens if the market fails in its attempt to correct itself?

That doesn't compute for him.

Most economists know the austrian school doesn't have wide credence among economists. And I'm perplexed that people who watched what happens when their "free market" system comes to its logical conclusion are still pushing such a failed policy. And more perplexed that anyone is still listening to them.

 

[Kevin_Kennedy]

The Austrian Government has proposed and is implementing a massive economic stimulus package that includes spending on infrastructure, road, rail and other public works. Specifically to address unemployment and the financial meltedown.

"Economic package: Chancellor Faymann expects 8 billion euros"
News from Austria : Federal Chancellery of Austria


So, I don't think its accurate for you to say "The Austrians" are employing your theores of antiquated lassaize faire capitalism.

Maybe your Baron Von Ludwig Institute is promoting that. But Austria as a nation and government isn't.

Why do you think the Austrian government is employing Keynsian stimulus? I'd love to hear your theories on why the Baron Von Ludwig Institute is being totally ignored.

Again, I have to wonder if you have anything constructive to add to the discussion?

 

[Diuretic]

I'm not sure what you mean.

Sorry, my fault, I was half thinking and half typing (no, that's not a consistent trait ).

What I was getting at was, is it possible - I know this is probably a bit hypothetical - for the market not to correct itself? I mean, the Austrians say let the market correct itself, but what happens if an economy just goes down so far that there is no correction?

 

[Kevin_Kennedy]

That doesn't compute for him.

Most economists know the austrian school doesn't have wide credence among economists. And I'm perplexed that people who watched what happens when their "free market" system comes to its logical conclusion are still pushing such a failed policy.

I wasn't aware that our "free market system" had begun, let alone come to its "logical conclusion."

 

[jillian]

I wasn't aware that our "free market system" had begun, let alone come to its "logical conclusion."

Why? Things aren't Dickensian enough for you yet?

 

[Diuretic]

That doesn't compute for him.

Most economists know the austrian school doesn't have wide credence among economists. And I'm perplexed that people who watched what happens when their "free market" system comes to its logical conclusion are still pushing such a failed policy. And more perplexed that anyone is still listening to them.

I have to admit to being a bit nonplussed jillian. But I'm determined to keep an open mind on this.

 

[Diuretic]

I wasn't aware that our "free market system" had begun, let alone come to its "logical conclusion."

No? Heck you should read some history. I'd suggest anything to do with the English Factory Acts of the early 19th Century would be useful.

 

[Red Dawn]

Again, I have to wonder if you have anything constructive to add to the discussion?

It's a simple question.

Why is the austrian government and nation, totally ignoring the advice of your Baron Von Ludwig institute? I've never heard a satisfactory explanation, other than it either an international conspiracy against a handful of libertarian economists, or that keynesian stimulus "sounds nice".

Sorry, I can't accept those as real arguments.

 

[Kevin_Kennedy]

Sorry, my fault, I was half thinking and half typing (no, that's not a consistent trait ).

What I was getting at was, is it possible - I know this is probably a bit hypothetical - for the market not to correct itself? I mean, the Austrians say let the market correct itself, but what happens if an economy just goes down so far that there is no correction?

Well the recession is the market trying to correct itself. I think what you're describing would be the complete collapse of the dollar itself, which is basically what we're on the road towards. In that case, people would start bartering with whatever they could to get what they need, and eventually a new currency would probably become the standard. Whether it was government implemented like the dollar, or whether it was simply something of value that the people themselves trusted can only be speculation at this point.

 

[Kevin_Kennedy]

It's a simple question.

Why is the austrian government and nation, totally ignoring the advice of your Baron Von Ludwig institute? I've never heard a satisfactory explanation, other than it either an international conspiracy against a handful of libertarian economists, or that keynesian stimulus "sounds nice".

Sorry, I can't accept those as real arguments.

Apparently you do not.