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|Subject: A vote for Obama is a vote for recession||Date: 10/3/2012 6:08 PM|
|Author: MadCapitalist||Number: 646798 of 774771|
A vote for Obama is a vote for recession
"After increasing government spending by 22.4 percent from President Bush’s last budget request and raising the national debt by more than 50 percent in less than four years, the Keynesian theory that Mr. Obama professes says the United States should have reached nearly full employment (5.3 percent, according to administration projections). Austrian school economists like Friedrich Hayek and Chicago school economists like Milton Friedman all wrote persuasive critiques of the Keynesian model, which never works in practice. In the late 1980s, I testified before Congress using empirical data with which I showed (in a curve) how, as governments get larger as a percentage of gross domestic product (as ours has under President Obama), economic growth and employment slow — not rise. My argument has been replicated and updated by many other economists in the years since, with similar results.
The simple fact is Mr. Obama seems wedded to a theory that has not worked and never can."
Just because it hasn't worked the last few thousand times that it has been tried, that doesn't mean that it won't work this time. One of these years, all that stimulus is going to kick in.
Japan is lucky. They have been using stimulus for a few decades now, so their stimulus is much closer to kicking in any day now.
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