"prime the pump" is perhaps the key phrase in all of economics. When you prime a water pump you get it started with a little water and then it runs on its own.
But, when the liberal primes the economy with federal spending it merely creates a bubble not related to or attached to the broader economy and so is not able to pull the broader economy along.
Worse, the bubble bursts causing a depression in the bubble area leaving it worse off than before, plus, the taxation necessary to finance the bubble further recesses the broader economy that was taxed to finance the bubble.
Now we can understand the futility of Keynesian "prime the pump" economics and the futility of using Obama's stimulus bubble to fix the housing bubble.
Ideally we want minimal taxation and Keynesian interference so the free market will organize the economy in the most efficient way possible.
But, when the liberal primes the economy with federal spending it merely creates a bubble not related to or attached to the broader economy and so is not able to pull the broader economy along.
Worse, the bubble bursts causing a depression in the bubble area leaving it worse off than before, plus, the taxation necessary to finance the bubble further recesses the broader economy that was taxed to finance the bubble.
Now we can understand the futility of Keynesian "prime the pump" economics and the futility of using Obama's stimulus bubble to fix the housing bubble.
Ideally we want minimal taxation and Keynesian interference so the free market will organize the economy in the most efficient way possible.