Weblog Commenting and Trackback by HaloScan.com The Barnyard: Why Keynesian Economic Theory Doesn't Work

Wednesday, December 17, 2008

Why Keynesian Economic Theory Doesn't Work

I meant to add this video to last night's post about Obama's "New Old Deal" but I forgot. Keynesians make the argument that big government spending will stimulate the economy and as I pointed out last night that is demonstrably false as the government has no money that it does not remove from the economy to begin with, with a very few exceptions. The government does make billions on leases and royalties on public land for oil, mineral, and timbering rights by private companies. The rest comes in the form of taxes in all their dreary forms. Government cannot grow wealth it can only redistribute it which is socialism and it doesn't work. All that money Obama and the Democrats want to spend has to come from somewhere, there sure aren't enough rich people to pay for it all and the country is essentially bankrupt.

Via Larry Kudlow with more here and here.

1 comment:

The Griper said...

what people don't understand is, as long as the individual has the right to possess assets an economic system based on the fact cannot fail.

it may falter but it cannot fail. it is only when the individual no longer has that right is there a possibility of failure.