America's "War on Capitalism": Why More Govt. Stimulus Is a Bad Idea

Tech Ticker via Yahoo! News ^ | July 8, 2009 | Aaron Task

[Oldeconomybuyer]

With the U.S. already "teetering on $62 trillion of debt," this is a very dangerous game, says Charles Ortel, managing director of Newport Value Partners, an independent research firm. Still, he believes the Obama administration is "going to try" for more stimulus this year, even if the $787 billion package passed in February was a "hodgepodge of programs nobody really understands."

In addition to adding to America's yawning deficit, Ortel opposes more stimulus because he believes the government is the "sector of the economy that needs to be subjected to a scalpel."

He also worries the Obama administration is waging a "war on capitalism," but doesn't give President Bush high marks on that front either.

As to the Keynesian argument the government needs to grow during periods of severe economic distress, Ortel says history suggests otherwise. "It's not clear stimulus worked" to get America out of the Great Depression in the 1930s, he says, and it's "abundantly clear Japan's stimulus didn't work" to stem its now 20-year economic malaise.

[Oldeconomybuyer]

[easttennesseejohn]

What exactly did you expect from a dedicated black liberation marxist who never read a book on market economics that wasn’t a critique? The think is Keynesian theory is based upon the creation of demand and believe it or not included tax cuts , not only government spending, as a means to create consumer demand. Unfortunatelh, when the theory was developed, Keynes wasn’t talking about an economy burdened with $60-80 trillion in unfunded liabilities; an inflexible budgetary situation with out of control entitlements limiting budgetary controls,or a country with a national debt in excess of$11 trillion, and rising, with the subsequent debt burden involved. In fact, his remedies were supposed to be targeted and limited until the economy began to regenerate demand on its own.Our cuurent economic scholars don’t tell you any of this. Ignorance is bliss, right?