Posted on 07/30/2010 12:24:16 PM PDT by rightwingintelligentsia
The idiot was given the award due to his leftist politics and not for any real work or cogent thought.
Then, again, I know a couple of leftist PhDs who insist on being called “Doctor.” I make it a point not to and when they complain I tell them that if they do not have the title “MD” after their names they are not real doctors. It winds them up pretty good!
Krugman was at one time an economist. He is now a columnist. Don’t confuse the two.
They aren’t the same.
Keynesian Economics can NEVER start with a ZERO GDP Economy. You always have to start with a BIG Pile of Other Peoples Money.
Obama and Orzag are wrong?
We cant buy our way out of a recession?
Kenyan economics. Not working.
Three words: Broken Window Fallacy. Explains it all, just analogize taxes and regs to breaking windows. Lots and lots of windows...
Green Jobs Destroy Good Jobs
http://www.commonwealthfoundation.org/research/detail/green-jobs-destroy-good-jobs
Excerpt:
A Spanish study concluded that subsidizing renewable energy leads to a loss of 2.2 jobs for every one green job created. The study also found Spain needs to increase the cost of electricity by 31 percent to pay for its deficit, largely caused by renewable energy subsidies. Spain’s unemployment is 19 percent, indicating green job growth is not an effective way to stimulate an economy. A similar study in Italy found each green job displaced 4.8 jobs in the overall economy
“I make it a point not to and when they complain I tell them that if they do not have the title “MD” after their names they are not real doctors. It winds them up pretty good!”
Do you also tell the M.D.’s that they have trade school degrees?
The only way that Keynes logic works is if money is actually moved in time to pay for things that would have been purchased by the government anyway at a later date.
That said, you are still stuck with equal government taxation and less government spending later, so even then it is questionable.
More remarkable when you consider that the Canadian economy is tied to the U.S. economy. When the U.S. catchs cold, Canada sneezes.
I think it only works if government already has the money; spending a surplus for example. Borrowing to spend is sucking money out of one pocket and putting it back in the other.
Ping
Assuming you cut spending later, borrowing would work to front load the economic effect. However, you are then in a bidding war with private industry over available capital, so that is a negative that has to be taken into account. At the end of the day, the government is not the economy, its a giant tick that can only move money (and debt) around in time.
Whether you borrow to spend, or spend rather than lend (as in the case of a surpluss) doesn’t matter, it comes out of the private economy either way. The only way you can have it work is if you are able to access funds that the private economy would be unable to get at, like if you are able to borrow money from China which they wouldn’t have othervise lendt to business or private individuals. Even then, it would have been more effective to simply subsidise borrowing from abroad, and let the market allocate the funds.
It’s been renamed, it’s now called cash for clunkers.
Yes, when everything is averaged out over time, it doesn’t take rocket science to understand that it will average out (no net gain). That is why I said they can only move money through time, kinda like me using a credit card to double my income. The now is better, the later sucks.
The only government spending that has been proven to boost an economy every single time, is when the funds are plundered from other lands. But even then it averages out to zero or less if you consider the impact on all parties.
We are already so far in the hole that “further” borrowing doesn’t stimulate anything. Our government sucks so much investment capital out of the private economy that entrepeneurs and businesses can’t get the credit they need to finance operations or expansion. Banks have been warned that they better not put taxpayer dollars at risk so they are content to finance the government instead of private enterprise. We are way past the point where government spending has any positive effect what so ever.
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