Saturday, June 26, 2010

As one reads the logic contained in the post below from the WSJ, let's contrast the thoughts of fiscal sanity with the lunacy contained in the following article from The Nation which, I guess, is the standard bearer for the left.  A Liberal might argue about the margins of their ideas, but this is their plan, this is their wish, this is....are you kidding me!

The first fundamental failure of Keynesian economics occurred forty years ago during the Vietnam War when the economy was overheating but the political system failed to take the corrective steps that would restrain price inflation—that is, raise taxes and reduce federal spending. The decade of economic stagnation that followed became a central factor in discrediting both liberalism and the Democratic Party.

We are now witnessing a second great failure of the doctrine John Maynard Keynes devised for managing a healthy economy. This time, Washington faces the opposite problem—a starkly underperforming economy in which 10 percent of the workforce are without jobs and income. Yet the President and Democratic Congress, spooked by the swollen federal deficits, are unwilling to do what Keynes prescribed in these circumstances—pump up federal spending enormously and run even larger budget deficits in order to force-feed a stronger recovery.





 I'm not sure I would let these idiots baby sit a pet, let alone run a company (that's right, now that I think of it, The Nation, is continually begging for handouts) let alone our economy.  Really, we just have not spent enough money we don't have?  That is the problem????   What defect of cognition can cause a mind to arrive at such a faulty conclusion.  

Our main Liberal protagonist, Baxter, continuously asks for us to offer cuts to arrive at a balanced budget, not  being a legislator myself, I referred him to one offered by Conservatives which addressed the issue.

And what do the Democrats offer?  Stimulus III.  Good grief.




3 comments:

Baxter said...

Jim -

Its not that you are not a legislator yourself (I'm not a legislator myself, dammit). The problem is that you do not understand basic economics or the budget that you are arguing about. A while back you said that the economy and tax policy were not really connected (Mark R reluctantly corrected you). Now you do not understand the multiplier effect or the benefits of infrastructure jobs and the bridge they create between recession and a robust private sector fueled economy.

When Bush was president you agreed with Dick "Deficits don't matter" Cheney and you supported TARP ("bailouts") explaining that the house was on fire. Now, we have a new president and you act as though the deficits were created in just the past 17 months and you damn the bailouts that you once supported.

A "consistent conservative" you are not, however, you have found a home in the Tea Party.

Jim G. said...

Sure I understand...we are going broke by spending too much money.

I do not recall saying exactly that, which seems to never get in your way, but to be clear: No, we cannot accurately predict the effects of your grand schemes on the economy and cannot predict the hurt of your taxes, but muddle and hurt they do.

Benefits? Robust private sector? Then let's make the census permanent!

Yes, in a time of economic growth, some deficit spending can be tolerated, especially when it is a small part of GDP, however when the deficit is eating up the whole GDP and an entitlement wave is coming, we need to reduce spending.

Yes, I supported intervention, possibly wrong in retrospect, however to jump from there to the whole sale takeover and wild spending of this President is what would be inconsistant.

Baxter said...

Please clarify, Doc. Are you saying deficits are okay during growth but not during recession?