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To: Qbert
Only problem is there was nothing Keynesian about the Obama stimulus. The bulk of it simply went to state, and local, governments to paper over the debt they were running up due to the crash in home values. Despite claiming they were following Keynesian model, the 0 stimulus did not follow the Keynesian school at all.
44 posted on 06/21/2011 12:23:14 PM PDT by MNJohnnie (Giving politicians more tax money is like giving addicts free drugs to cure their addiction)
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To: MNJohnnie

Very true.

Johnny Maynard would be very disappointed in how his ideas have been misapplied.

As I understand it, items from his economic theories as to how public spending impacted the economies were utilized to justfy jump-starting a stagnant economy by a sharp-short bump in government spending.

These efforts were claimed to have produced some benefit and, like magic, a whole program of constant government “stimulas” came to be accepted despite its costs and lack of efficiency. The taxes to finance and/or the inflation to print-around that spending became big factors in making econimic cycles deeper and prolonged — the exact opposit of what Keynes would have proposed.


50 posted on 06/21/2011 12:32:42 PM PDT by KC Burke
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