Able to Raise Keynes

Recently on This American Life, economists told NPR listeners how the then-upcoming stimulus bill would amount to the very first legitimate and full test ever of Keynesian ideas.

Sure, politicians have been using John Maynard Keynes’s notions as an excuse to deficit spend ever since the Great Depression. But then, Lord Keynes had wanted politicians to spend even more, more than they dared.

Now, President Obama and our Democratic Congress have decided to spend enough billions, or trillions, to really do the trick.

Switch to Larry King’s latest interview with Bill Clinton. Our former prez assured us that the stimulus bill “would do what it is supposed to,” and he mentioned three things, only one of them vaguely about stimulus. He said the bill was better seen as a “bridge over troubled waters.”

Clinton said the real issue was declining asset values, which Congress would address later.

At Mises.org, Stephan Kinsella asked how this could amount to Keynesianism. Clinton used a different lingo entirely.

Here’s how: It’s not that the bill will give us Keynesian stimulus. It’s that it has stimulated politicians in the old, old Keynesian way.

Congressional Democrats know that the stimulus won’t work. So they are preparing the spin now. From them we heard the official excuse for the bill. From Clinton, the future excuse.

Politicians know zip about the economy. They just know how to spend our money. And our great, great, great grandchildren’s.

This is Common Sense. I’m Paul Jacob.

9 Comments so far ↓

  1. Mar
    5
    7:51
    PM
    Richard Campbell

    Benjamin Franklin, a prominant
    fouding father,once said, “The only things certain in life are death and taxes”. I prefer my shorter version, “Death to the taxers”.

  2. Mar
    5
    11:15
    PM
    Howard Bernbaum

    Keynes was a socialist’s socialist and his economic theories long since discredited. We have daily proof of the incompetencies of government to solve problems. They create them, not the other way around.

    When one looks at earmarks as a congressperson’s way of saying thanks to a contributor, we should recogize it for the graft that it is. All these trillions being thrown away will not solve the fiat money problem and the Federal Reserve printing that becoming worthless money.

    I’m afraid the liberals among us won’t wake up to the criminality until it is too late and even then will whitewash the villains.

  3. Mar
    5
    11:47
    PM
    Timothy James Maki

    We the People have the attention span of a gnat. Oh, I should not have insulted gnats. Have you ever tried to kill one of them buggers? Anyways.

    Somehow we have for gotten G.W. was in charge the last 8 years. We pretend that has nothing to do with the state of the economey only a few months after the election.

    And to those who dare to think this is not a Socialist Nation, think again. Our taxes make this a socialist Nation. Ever heard of Social Security? Food Stamps? Medicare? Low Income Housing? Police? Fire Departments? I would like to add Hospitals….but sometimes they will not accept sick people and sometimes they will….I don’t know why.

    And yes this bailout garbage is ridicules.

    I think the only thing that will help this country is bringing industry back and putting people to work. Oh yes, and then they can pay taxes too.

    Good Luck.

  4. Mar
    7
    10:50
    AM
    Richard

    I can only HOPE that it will be my grandchildren and great grandchildren who end up paying for this nonsense. RATHER than me!

  5. Mar
    8
    12:00
    AM
    Rubicon

    At 35% tax rates, compared to 0% to perhaps 20% in many other nations for businesses, the prospect of industry returning to America remains bleak. Why would a corporate manager suggest bringing the operations back to America, when they pay significantly lower taxes wherever it is they escaped to?
    If Keynes is the guide for this economic experiment, we can write off America now & save time. It has never worked & it has historically brought about serious civil unrest. (Read: revolution)
    Bush (the ‘compassionate “conservative” {which he was NOT}’), contributed significantly to this mess along with a great number of idiotic Republicans in Congress. May they forever have hemorrhoids.
    That does NOT mean the rest of us, Republican or Democrat (because surely Democrats contributed to this mess just as much as anyone else did), must drive off the cliff.
    The spending will not solve this since a large portion of it is designed to promote social change programs. The “shovel ready” projects, were already funded, so there are NO shovel ready projects of any true significance.
    Bush had his way, to a degree, early in his presidency. After Democrats gained control of Congress, he lost all control of the domestic agenda. Any who deny this are not being honest. The incessant (and perhaps deserved) attacks on him, negated his effectiveness on domestic issues, plus, those who did understand what was happening or coming, were personally profiting from the possibility. They kept quiet.
    Socialism does NOT include community services. Every political system has them.
    At issue is, we cannot spend out of this. And, liberal spending will only bring about serious inflation. I mean, serious inflation, which will kill off any economic recovery.
    The failure of the president & Congress to address the declining asset values (read: mortgages) is why this recovery has not taken off. In fact, had this been addressed right up front, we would not be anywhere near where we are now. THAT will one day be recognized as the real crime. Those who put off dealing with this caused this problem to become worse & they will be responsible if we sink into depression.
    Like it or not, it is already Obama’s economy & he is already being judged for it. That is how it should be since whatever happened previously has been wiped out by actions taken by Obama & his majority Democrat Congress.
    Its time to let go of the hate Bush mantra. Its over. He’s gone.
    Now, do what is best for America, stop with the socialism nonsense & stop spending. Like it or not, this one is on the Democrats!

  6. Apr
    7
    5:00
    PM
    James M. Kacey

    I don’t want to stand on a soapbox , but from where I’m standing or (sitting) Richard needs a lesson in smarts. Timitohy J. Maki makes sense and Howard Bernbaum is on the right track…. but this is the way that I see it and the People have the power to do this: Remove Nafta / Free Trade, Remove Communist Red China from controlling all of our markets and saturation of them . Put back what was removed by Bill/ Hillary Clinton and try them as traitors – to American Workers , because that’s exactly what they are – they rammed through Congress in 1993 Nafta/ Free Trade. Put back our form of trade that works for everyone: Supply/ Demand Fair Trade with American’s in control of their own markets with taxes, excise taxes and import taxes in place and all the former American Manufacturing Corporations that fled to Europe treat them like they are Foreign Countries— they fled to avoid cleaning up their pollution and contaminating the air/ water quality here, but what they still do there still affects not only us , but the entire world in pollution of our planet . By reversing free trade to fair trade American’s can be put back to work and by all countries paying duties we can move forward with the necessary funding to mandate all manufacturing world wide to clean up their pollution of this blue marble that we all live on.. and what China does and they can’t see the sun from their toxins – does hurt all of us every four days their air is our air….. What Republican’s and now Democrats have forgotten that UNIONS created the High Standard of Living that the world envied and made us second to none and the rest of the world wanted that so they remove it from us – and find out they will hurt when American’s lose their jobs and pensions and not buy their garbage – the only way everyone can have a piece of the pie is to work together and return the U.S.A. to Supply/ Demand -Fair Trade. what we always were before 1993……

  7. Apr
    7
    5:16
    PM
    James M. Kacey

    We need an American Revolution in our country that rivals the Million Man March on Washington….. American Manufacturing Workers Union/ non Union should join hands and show Solidarity with each other and against Democrat ” Shadow Policy Government and to remove NAFTA/ FREE TRADE and put the Clinton’s on trial as Traitor’s including the person that put them up to ramming Nafta/ Free Trade through Congress for personal gain. George H.W.Bush , including the overvalued Fannie/ Freddie not worth the paper it was printed and sold world wide – which caused the Mortgage meltdown and AIG/ Wall Street Bailouts because they were government backed and this should be considered an act of high treason against all the American Taxpayers.

  8. Apr
    7
    5:29
    PM
    James M. Kacey

    Obama is a traitor to the U.S.A. and a demagogue, and should be removed by the people and William Ayers, Emmanuel Rahm should both be tried as traitors —- neither deserve to be in charge of our country in any way shape or form and why isn’t Ayers in prison for murder? He stated that he did it and wished he could do more, now he brings forth the Social Justice of American’s as he sees it… should be an act of high treason on top of murder and the admission that he wished he could do more against the American people. When we will we start coming together again as a nation committed to the rule of The People ? As we were instructed by our Founding Fathers ?

  9. Apr
    7
    6:04
    PM
    James M. Kacey

    I guess that we can all phrase our government in the present, but actually to a certain degree we can start playing taps right now , because I for one doubt there are enough people to start a revolution against our non – existent government of the people, by the people, for the people, because so many are watered down or dummied down and it will only get worse as Obama ‘s true CHANGE agenda gains momentum with few getting educations – because in a Socialist/ Communist Government – Education is dangerous – they don’t – the “they” is the Shadow Government.. Democrats our true enemies who are putting together everything to take away, remove, over tax – control us physically/ Mentally / Morally/ Taking away our freedoms, religions , movement in our country, have no voice in our government…. American’s I don’t believe will tolerate this well at all. but to convince them that they should become active now too many are set in their do nothing silent majority crap- that they will o0nly get involved when it’s too late and they have lost everything to a handful of radicals …..

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