The Death of Keynesian Economics

Discussion in 'Economy' started by CrusaderFrank, Nov 4, 2010.

  1. CrusaderFrank
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    CrusaderFrank Diamond Member

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    The election results in 2010 did more than take the Speaker gavel from the hand of the most dangerous woman on the planet, it was the death knell of the Keynesian economic theory.

    The track record of JM Keynes "Increased government spending to stimulate the economy" has been a total, utter failure here in the USA every time its been tried.

    Presidents Hoover and FDR tried it and they took a recession and turned it into the greatest economic decline since Atlantis sunk under the waves. Increased government spending yielded a decade long decline and 20% average unemployment.

    In 2008 Obama tried his version and the Stimulus and $1.3 Trillion deficits and the $3 trillion the Fed has pumped out have done nothing positive for the economy; they have only exacerbated the problem. Do you understand that we've poured out almost $5 trillion since the start of 2009 to help the economy and it's not done a single positive thing?

    Progressive have lied to use for generation about how the New Deal saved America from Capitalism. Now that they've lost their media monopoly we see the truth: Government Spending = Epic Fail.

    It cost the Democrats Congress, it should Krugman his Noble Prize and we should laugh hysterically next time someone suggest we need "more government stimulus" to help the economy.

    We just need to get through this period with our nation still intact, then we can laugh.
     
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  2. topspin
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    topspin BANNED

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    I wouldn't go that far, shelved for decades!!! Yes
     
  3. Norman
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    Norman Gold Member

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    Ell public seems to be waking up to the fallacies.

    But governmnet just loves keynes too much, because he gives them power. Nothing will change as far as I am concerned. We will see series of keynesian remedies without doubt.
     
  4. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    I doubt it.
     
  5. loosecannon
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    loosecannon Senior Member

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    LMAO! Did monetarism die as well? We only wish that deficit spending wasn't gonna continue till we all croak!

    The tea partiers will be coopted into GOP thinking sooner than you expect and they will keep spending tomorrow's money the same way they have since Reagan.
     
  6. Valerie
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    Valerie Gold Member

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  7. william the wie
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    william the wie Gold Member

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    The US government uses the Fisher and Hicks-Hanson models not Keynes. The general theory was a call to research what is now Evolutionary, Behavioral and Neurological economics. Although not viable as a political program: running up surpluses in good times and investing them so they can be spent on government projects in bad times? What politician is going to endorse that?
     
  8. CMike
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    CMike Zionist, proud to be

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    The problem is that the Kenyan still believes in Kynesian economics as do his radical left wing minions.

    Obama is an idealogue.
     
  9. loosecannon
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    loosecannon Senior Member

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    so are you. In fact you believe in things you can't even begin to understand.
     
  10. finebead
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    finebead VIP Member

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    I am not an expert on the great depression, but your statements are a gross oversimplification, and I believe you assert a cause and effect relationship between govt. spending and prolongation of the depression, that is not accurate.

    My impression is that after the stock market crash and beginning of the depression in 1929, Hoover did not stimulate the economy. Things got much worse, and the public threw out the repubs and gave the govt. to Roosevelt in 1932, 3 years into the depression and near its bottom. I don't know exactly when the CCC and WPA works programs got up and running, but the voters hated that so much they elected Roosevelt 3 more times (sarchasm)!

    What role did securities fraud play and bank over-leverage and subsequent bank failures. Remedies, we got the SEC out of this, and the FDIC, and there were limits on bank leverage set at 15:1 until the republican SEC relaxed the net capital rule for the 5 big investment banks in 2004, leading to their collapse in 2008.

    Maybe you can post a scholarly article, like not from a republican shill site and we can all get educated.

    Of course a huge problem in the depression was the deflation that took hold. If you bought a farm for $1,000 and planned to sell wheat for $1 a bushel to pay off the note, and wheat fell in price to .50 a bushel, you could not service your debt because you business model was shot, prices had fallen too far to service the debt you had. Nobody would buy anything because they thought if you waited a year you could buy it cheaper. Commerce came to a halt, then unemployment rose, and the economy was in a death spiral, a race to the bottom of economic activity where only commerce that was REQUIRED was conducted. You had to eat, dress minimally, and the dead were buried. Then you were at the bottom and things could begin to get better when there was no farther to go down.
     
    Last edited: Nov 5, 2010

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