Last week's Eye Poll took up the issue of the over $800 BILLION spending... "stimulus" package. Eye readers are just as skeptical of the concept of spending borrowed money in an effort to stimulate an economy plagued with bad debt. 53% of readers do not support the "stimulus" package, 10% supported some of it, 1% had no opinion, 14% supported most of it, and 22% supported the package (view it here).
There's a fundamental problem with the Obama-Pelosi-Reed "stimulus" package in that unlike the private sector, governments do not create wealth because every government job necessarily takes resources away from private companies and individuals. FDR's New Deal is a prime example of the failure of government spending as a vehicle for economic recovery.
Most historians credit World War II with raising the United States and the world out of the depth of the Great Depression. Keynesians point to the massive government spending inherent to that conflict as validation of their belief in government spending as a vehicle for economic stimulus.
It's true that all of the parties involved in World War II spent massive amounts of money on the war. However, the war was also a time of rationing and privation where non-war related production was at an absolute minimum. The warring nations of WWII did not create wealth they quite literally destroyed it.
At the end of that brutal conflict, most of the industrialized world was left in shambles - their infrastructure in destroyed, their economies non-existent. The lone exception was the United States. A war weary world turned to the one country left standing to provided needed goods that they were no longer able to produce themselves.
It wasn't the war that brought the world out of the Great Depression - rather it was the end of the war and a return to wealth creation by individuals and private companies that brought about economic prosperity.
Obama's Neo-New Deal will have the same effect as FDR's - temporary jobs, massive debt, and a legacy of unsustainable government programs. The blind adherence to Keynsian principles will most likely deepen the current recession perhaps even pushing the world into depression.
18 comments:
i think you're making a couple of errors here.
1. not sure what a 'government job' is in the context of your post, but it only takes resources away from private sector IF private sector was going to use them. they're not. manufacturing and orders for supplies have virtually halted.
2. fha mortgages, the federal highway program, the g.i. bill and unions all played a major role in getting dollars flowing to the people by building basic infrastructure - that is what pushed the growth. it wasn't by any stretch solely the self-sufficient bootstrapping private companies.
Nice attempt but alas, APS apparently does not teach economics -- it is painfully obvious that either people never took economics or simply dont care to learn it's priciples.
So we are destined to just sit and pray that this crap works, even though it never has before for anyone else.
The Eye would leave you to believe that Milton Friedman style economic policies would solve the current problems when in fact they are a primary cause. Not that Keynesian is THE solution but it's in the right direction.
I've noticed a similar situation here in New Mexico. Lots of people spend their hard earned cash gambling at Indian casinos instead of bars, restaurants, entertainment venues, stores, or groceries. I have also noticed that a lot of folks go to casinos, or belong to private clubs because they can smoke legal products there. They more often than not are better tippers than non-smokers too. A lot of people favor exercising their right to choose and prefer other alternatives, like investing in chance rather than supporting New Mexico businesses. It's a bit of a shame concerning the focus of our state, don't you think?
Dear American liberals, leftists, social progressives, socialists, Marxists, et al:
We have stuck together since the late 1950's, but the whole of this latest election process has made me realize that I want a divorce. I know, we tolerated each other for many years for the sake of future generations, but, sadly,this relationship has run its course. Our two ideological sides of America cannot, and will not ever agree on what is right, so let's just end it on friendly terms. We can smile, chalk it up to irreconcilable differences, and go our own way.
Here is a model separation agreement:
Our two groups can equitably divide up the country by landmass each taking a portion. That will be the difficult part, but I am sure our two sides can come to a friendly agreement. After that it should be relatively easy! Our respective representatives can effortlessly divide other assets since both sides have such distinct and disparate tastes.
We don't like redistributive taxes so you can keep them. You are welcome to the liberal judges and the ACLU. Since you hate guns and war, we'll take our firearms, the cops, the NRA, and the military. You can keep Oprah, Michael Moore, and Rosie O'Donnell (You are, however, responsible for finding a bio-diesel vehicle big enough to move all three of them.)
We'll keep the capitalism, greedy corporations, pharmaceutical companies, Wal-Mart, and Wall Street. You can have your beloved homeless, homeboys, hippies, and illegal aliens. We'll keep the hot Alaskan hockey moms, greedy CEO's, and rednecks. We'll keep the Bibles and give you NBC and Hollywood.
You can make nice with Iran and Palestine and we'll retain the right to invade and hammer places that threaten us. You can have the peaceniks, and war protesters. When our allies or our way of life are under assault, we'll help provide them security. We'll keep our Judeo-Christian values. You are welcome to Islam, Scientology, Humanism, and Shirley McClain. You can also have the U.N. But we will no longer be paying the bill.
We'll keep the SUVs, pickup trucks, and oversized luxury cars. You can take every Subaru station wagon you can find. You can give everyone health care, if you can find any practicing doctors. We'll continue to believe health care is a luxury and not a right. We'll keep The Battle Hymn of the Republic and the National Anthem. I'm sure you'll be happy to substitute Imagine, I'd Like to Teach the World to Sing, Kum By Ya, or We Are the World.
In the spirit of friendly parting, I'll bet you ANWAR which one of us will need whose help in 15 years.
P.S. Also, take Barbara Streisand & Jane Fonda with you.
(February 16, 2009 10:43:00 PM MST)
The concept of "Judeo-Christian" was not a concept recognized by our fore-fathers. Re-read the U.S. constitution and you will see that all the references to God and country were from a "Christian" people. "Judeo" was introduced because someone felt they might be left out.
"I am APS"
Not the best education, but I'm smart enough to see my stock porfolio going further into the shitter each day.
Who's Christine Parker?
What about the Pot on Marty's bed?
What's up with that?
(February 17, 2009 4:07:00 PM MST)
.... Obviously, an expert who knows what the bible says is still willing to show us his ignorance by flapping his tongue!
"Hypocrites! Well did Isaiah prophesy about you, saying: 'these people draw near to me with their mouth, and honor Me with [their] lips, But their heart is far from Me. And in vain they worship Me, Teaching [as] doctrines the commandments of men.' "
"Every plant which My heavenly Father has not planted will be uprooted. "Let them alone. They are blind leaders of the blind. And if the blind leads the blind, both will fall into a ditch."
An honest question: Can somebody show me a country where a "free market" economy such as the Eye, Hannity, Limbaugh etc.etc.etc. promote is in effect and works?
I always hear about it like "let the market" take care of things but it's all theory...
20, 2009 7:16:00 PM MST
Yes,
1. The USA in the post war era thru the early 60s
2. The USA again during the Regan Administration
3. Japan
4. Hong Kong until it was given back to the mainland
5. Eventually China, probably within a decade, at which time we (USA) will be relegated to a back seat no matter which economic policy we are working with at that time.
Sadly the free market is not the best system, the best system has yet to be invented, however the attempt to lean toward the socialist will begin the inevitable slide --- to which I say; can you name a single socialist leaning coutry that is successful for the majority of its citizens? And with the caveat, do those citizens have freedoms such as you have.
The closest to true "free market" economies in the world are Singapore and Hong Kong. Hong Kong is being slowly taken over by the Chinese and in Singapore they'll execute you for being caught with a joint though. Probably sounds like paradise to half the right wing reactionary cops on this blog.
"1. The USA in the post war era thru the early 60s
2. The USA again during the Regan Administration
3. Japan"
Your understanding of economic history is very off-base. The USA pre-60's engaged in vast amounts protectionism despite being the only remaining industrial power following WW2. The Reagan years saw no significant trade changes from the previous administrations and mostly broke out of recession through deficit spending. The US has had gigantic domestic agriculture subsidies and import tariffs in place ever since the 1920s. It wasn't until NAFTA (proposed by Bush I, passed by Clinton) that the US really engaged in free trade, and even then its only with Canada and Mexico (and even with them we still have protectionist barriers, such as the tariff on Canadian lumber.) Japan has been from 1945 until the last couple of years the single most protectionist economy in the world, and its government spending programs dwarf even the current US's when adjusted by population and GDP (and, by the way, their GDP was either in recession or at less than 1% annual growth from about 1992 until 2005 - this is called the "lost decade" though it lasted longer than a decade.)
The only true laissez-faire economies in world history are Hong Kong (until about 2004 when China began interfering) and Singapore (which as was mentioned before is a police state in which citizens have very few rights.) I think you need to learn to distinguish American-style Conservatism from free trade capitalism, because they're not even remotely the same thing.
Who the hell is Christine Parker and the Pot Plant?
It was all a distraction to divert attention from barboa,,,just let it go he's untouchable! You'll get over it.
There is no god!
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