Outcome of Return to Keynesianism Is Uncertain
George Melloan, The Wall Street Journal | January 13, 2009
The Fed’s decision to pour tons of new dollars into the US economy has not staved off recession. ++ The government is in fact the main beneficiary of the huge increase in the monetary base: deposits which the public are too uneasy to borrow have been put into the Treasury to be spent by the government. ++ This is Keynesian economics, characterized this time by unparalleled government deficit spending. ++ The Fed has expressed confidence that this will ensure against another 10-year-long Great Depression; one can only hope so.
Tags: | financial crisis |
recession |
economic depression |
US |
Obama |
deficit |
stimulus package |
Sun, Feb 15th 2009, 00:42
psikeyhackr
Never heard of it? That is not surprising.
A businessman that doesn’t know the difference between Gross and NET is a pretty dumb businessman. Maybe the economists are pretty dumb or maybe they just want us to be.
John Kenneth Galbraith was one of the early Keynesians but he wrote about the planned obsolescence of automobiles in 1959, 13 years after Keynes’ death and 10 years before the Moon landing. What do economists say about it today? How old was Obama in 1959?
There have been 200,000,000+ cars in the United States since 1995, more cars than there were Americans in the 30s. But how much do Americans lose on the depreciation of automobiles every year? It won’t show up in NDP because economists only care about the depreciation of CAPITAL GOODS. But they don’t point that out to us even in their economics books.
At $1,500 per car per year that is $300,000,000,000 per year.
The economy depends on consumers being dumber than economists.
GlobaLIES
psik