Another Nails In Keynes' Coffin
Despite Keynesian economics having been proven wrong time and time again, politicians still doggedly cling to its suppositions for one reason only...it argues for their ever increasing power.Now a team of economists from the International Monetary Fund, hardly a proponent of free markets, has released a report detailing the inefficiency of the economic stimulus in the United States:
A one percent increase in government purchases (as a share of GDP) increases GDP by a maximum of 0.7 percent and then fades out rapidly. This means that government spending crowds out other components of GDP (investment, consumption, net exports) immediately and by a large amount.The report shows government stimulus investments yields an ROI of -30%, sending ripples throughout the economy that stifle private enterprise. Even the most optimistic reading completely invalidates Obama's economic strategy to date.
He'd better get Joe Biden out to more photo ops with green energy manufacturers.
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2 Encouragement:
This may be the most inadequate analysis of Keynesian policy I have ever come across. You should try your hand at something other than economics.
You should attempt to make a point, or in some way specifically refute me, rather than making anonymous rhetorical statements that amount to saying "Nuh uh!".
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