Obama Busts a cap in Keynesian Economics

Discussion in 'Economy' started by CrusaderFrank, Jul 12, 2011.

  1. CrusaderFrank
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    CrusaderFrank Diamond Member

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    I will give Obama credit for killing Keynesian economic theory. The absurd theory, the darling of Progressives everywhere, was that Gubbamint needs to deficit spend during economic downturn in order to "prime the pump" of the economy.

    Nobody that's ever earned a paycheck in the private sector takes this theory seriously. Moreover it has failed every time its been attempted, most recently Failed Leaders Obama's Stimulus.

    "Economist" Paul Krugman said that the Failed Stimulus failed only because it was too small, it needed to be at least twice as large. Yes, that's right, we needed to blow a hole in the Federal budget a trillion bigger than where we are in order to really Really REALLY AND TRULY show how it fails every time.

    Keynesian Economics, RIP

    And unlike where he had to share credit with the Navy Seal Team's hit on bin Laden, Obama gets all the credit for this kill.

    Well done, Barry
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    So was HOOVER right?
     
  3. ShackledNation
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    ShackledNation Libertarian

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    LOL! Hoover engaged in Keynesian economics. In fact, he was involved so much in government spending and bailouts that FDR called him a SOCIALIST when they were campaigning. It is a myth perpetuated by the elites that Hoover did nothing. Hoover was the most interventionist president we had ever seen...until FDR.

    Here is a quote from Keynes about Hoover in his 1919 best-seller The Economic Consequences of Peace:

    "Hoover was the only man who emerged from the ordeal in Paris with an enhanced repuation....his eyes steadily fixed on the true and essential facts of the European situation...precisely that atmosphere of reality, knowledge, magnanimity, and disinterestedness which, if they had been found in other quarters, also, would have given us the Good Peace."

    Here is a quote from Hoover, the fall of 1932 on the campaign trail.
    "We might have done nothing. That would have been utter ruin. Instead we met the situation with proposals to private business and to Congress of the most gigantic program of economic defense and counterattack ever evolved in the history of the Republic. We put it into action…. No government in Washington has hitherto considered that it held so broad a responsibility for leadership in such times…. For the first time in the history of depression, dividends, profits, and the cost of living, have been reduced before wages have suffered…. They were maintained until the cost of living had decreased and the profits had practically vanished. They are now the highest real wages in the world.

    Creating new jobs and giving to the whole system a new breath of life; nothing has ever been devised in our history which has done more for … "the common run of men and women." Some of the reactionary economists urged that we should allow the liquidation to take its course until we had found bottom…. We determined that we would not follow the advice of the bitter-end liquidationists and see the whole body of debtors of the United States brought to bankruptcy and the savings of our people brought to destruction."




    In total contrast, in the depression of 1920–1921, the federal government and Federal Reserve really did implement the harsh measures that Keynesians erroneously attribute to Hoover and company. And yet, as its name suggests, this earlier depression was over quite quickly, and paved the way for the Roaring Twenties.

    LEARN YOUR HISTORY!
     
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    Last edited: Jul 12, 2011
  4. mascale
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    mascale VIP Member

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    The General Theory of Employment, Interest and Money, J. M. Keynes, February, 1936: Not only came after the frozen spending levels of 1931, which created 1932: But even came after 1933, 1934, and 1935.

    Keynes had a theory of liquidity, and spending is all about Keynes.

    More like Herbert Hoover are the Balanced Budgeteers of Conservative, Republican, state and local government. Instead of participating in the recovery, from the Great Recession, they have thumbed their noses at the U. S. economic recovery attempt: Creating 500,000 job losses, instead.

    The Obama spending slowed that down, and sparked 2.0 mil. jobs despite the Balanced Budgeteers, created so far.

    The Republican Party despisement of Old and New Testament fundamentals even brought about the housing market collapse. Exodus 22:25-27, even comes before Herbert Hoover, even in math: "If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him."

    ARM's were bad for spending, and now for balanced budgets: At the same time!

    Keynes likely did better did understand the U. S. tax-basis, of the state and local economies: Which need spending. Customers in the stores create a tax base, and revenue. Public Works Construction types of Employment are supposed to happen. Pawlenty wants to employ Ph.d.'s in more research, by contrast: Like the Defense Engineers of the Reagan Debacled economy.

    Keynesian economics is all about spending. Every Republican Household in the United States is now opposed to all the spending! Not even Nixon was opposed to all the spending. . .espcially in cash, in brief cases and suitcases.

    "Crow, James Crow: Shaken, Not Stirred!"
    (Lands of Many Nations--accept spending even 24/7!)
     
  5. signelect
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    signelect BANNED

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    Mascales logic defies description,
     
  6. CrusaderFrank
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    CrusaderFrank Diamond Member

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    I should resurrect my FDR Thread, you'd love it
     
  7. ShackledNation
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    ShackledNation Libertarian

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    Did you even read my sources? lol. Herbert hoover passed stimulus spending packages and expanded government.
     
  8. PoliticalChic
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    PoliticalChic Diamond Member

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    HARDING was right.
     
  9. mascale
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    mascale VIP Member

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    Quaker Herbert Hoover actually famously relied heavily on volunteer efforts in the response to the downturn. The American Friends Service Committee was asked to coordinate relief efforts in several states. 1931 Federal Spending duplicated 1930 federal spending.

    Usually, subsequent that experience, state and local governments have been helpful in economic recovery. They have not been helpful in this one. There would typically be 800,000 of those jobs created by now. There have instead been 500,000 job losses.

    State and local governments bleeding jobs | Reuters

    There are more job losses yet to come, at the state and local level.

    It is only starting to be noticed in the other reporting.

    "Crow, James Crow: Shaken, Not Stirred!"
    (Pharoah's army chase Hebs to Red Sea...which was actually restricted(?). . .Like Ivy League(?)!)
     
    Last edited: Jul 12, 2011
  10. ShackledNation
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    ShackledNation Libertarian

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    Stop. You keep vomiting these quotes without responding to anything. Hoover raised taxes, doubled spending, passed bailouts, and passed the largest tariff in US history, crippling business and the free market. FDR called him a socialist because of it.
     

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