Keynesian Beauty Contest
Years ago I started making this offer: A $50 gift certificate for the winning example:
Keynesian stimulus was used in the
country _____ in the years ______,
during a __ recession/__ depression,
then the economy turned around within 2
years, and then produced ___ years
of lasting growth WITHOUT A WAR after this.
The increased tax revenue was enough to
pay off all the deficit the stimulus
had created within ______ years.
I’ve been posting this challenge on multiple forums for over 5 years, still no winners yet. It appears the liberals went out and cheered for Obama’s trillion dollar stimulus with exactly …. wait for it…. ZERO success stories.
I can’t even find where the liberal’s big stimulus advocate, Nobel prize winner Paul Krugman, has cited a single success either. He once claimed World War II was a success example. (http://krugman.blogs.nytimes.com/2011/08/15/oh-what-a-lovely-war/)
Forms of Republican (tax rate cut) or Democrat (spending increases) Keynesian stimulus has been used nigh on 27 years here in the US, and the deficits keep rising. Same for all 20 top western democracies: All have massively increased deficits so they are larger per capita than the US over the last 2 decades. None are paying back the increasing debts. Central bank stimulus has been a failure too, at one point the US had printed $2.9 trillion dollars to prop up the failure, Europe had printed $4 trillion. And no surplus tax revenue has been generated as of yet.
That’s 100% failure, right? A loan un-repaid is a loan failed. Worse than failure, selling something with a 100% failure rate is the behavior of a con game, not a transaction with a good outcome for everyone.
One decent research article confirms the lack of success as well. Tax cuts work better than spending increases, but I cannot find any success stories for stimulus!! The US government and both parties have been selling us a completely failing idea as a success plan for 30 years!
Con Man Behavior Documented
Liberals champion Keynes’ “stimulus” idea, but they abstain from discussion about paying back the debt it created. They also ignore Keynes’ stern admonition about printing money:
“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
—Keynes, The Economic Consequences of Peace
Destruction, not recovery, is what the liberals have implemented, according to Keynes.
And he proclaims it is an easy-to-hide fraud scheme as well, since not one man in a million can diagnose it.
Sounds like the fraud called Global Warming Theory, right? Liberal citizens act as if they are experts on advocating it, while refusing to discuss the gigantic holes in it. It is the behavior of con men, not scientists. Plato describes how Democracy spawns such self-righteous behavior we see now, since the Republic was ended in 1913.
” The sailors are quarreling with one another about the steering—every one is of the opinion that he has a right to steer, though he has never learned the art of navigation.” – Plato
A Fast Recovery
President Harding slashed federal spending and cut tax rates. A year later, the Harding depression was over—the shortest depression on record in US history. By 1923, the US economy was booming and continued to do so through the end of the decade. That’s why they call it the “Roaring Twenties.” Yes, the Roaring Twenties
started with a depression that was quickly cured by truly conservative tax reduction and spending reduction policies.
Two Standards for Economic Policy Scrutiny
The liberal criteria for trying a liberal economic solution is “We know Keynesian stimulus has never worked, but we don’t know if it will fail again so we should try it again.”
The liberal criteria for trying a conservatives economic solution is “We know your idea produced the fastest recovery and least hardship on the poor, but can you guarantee it will produce instance wealth for every citizen?”
Largest, Most Easily Exposed Act of Fraud in History
Two simple, well accepted economic laws guarantee that deficit spending will fail. And the results agree with the predictions. See the following in-depth article about the greatest fraud in human history: Government deficit spending.
For Deep Reading
“This paper studies whether fiscal corrections cause large output losses. We find that it matters crucially how the fiscal correction occurs. Adjustments based upon spending cuts are much less costly in terms of output losses than tax-based ones. Spending-based adjustments have been associated with mild and short-lived recessions, in many cases with no recession at all. Tax-based adjustments have been associated with prolonged and deep recessions. “
Be sure to read Atlas Shouts, the author’s 5-star novel on our economic decadence and how to fix it.