Sunday, December 21, 2008

Fixing the Economy, the Really, Really Hard Way

The shocking severity and magnitude of the credit crisis - or perhaps a better word would be the Politically Correct Crisis - has caused the traditional Left and the Pragmatists, including the Center-Right statist guard, to once again grab for the wrong, long-bankrupt tools to "fix the economy".

While the conclusion seems justified that political correctness is no longer an innocent toy for social make-ability in the hands of progressivism, they're calling - as by knee-jerk reaction - for more regulation, state control and objectively false remedies, blaming the perfidity of capitalism for its failure. Here's why Keynesian methods don't work:

Washington Post: "Obama Expands Stimulus Goals - As Economic Outlook Grows More Dire, Early Target for Job Growth Is Bolstered"

President-elect Barack Obama has expanded his goals for a massive federal stimulus package to keep pace with the increasingly grim economic outlook, aiming to create or preserve at least 3 million jobs over the next two years. (...) With liberal and conservative economists calling on the government to spend $800 billion to $1.3 trillion to stanch the bleeding, the greater danger to the nation, Obama was told, lies in doing too little rather than too much. (...) >>>

One cannot help pondering the definition of stupidity: repeating the same thing over and over, each time expecting a different outcome.

Perhaps the obvious answer to the obstinate economic policies leading to failure is, that Keynesianism is the only answer politicians have to economic crisis. That is, short of taking the brakes off, which would make market-mechanisms the heroes of this piece instead of them and that, would never do!

Dutch Socialist Finance Minister Bos went from rock-bottom approval ratings just two months ago to Political Figure of the Year 2008 for socializing the banking sector ... FDR is still credited for saving the US from The Great Depression! Long live the irreconomics of John Maynard Keynes!

- Filed on Articles in "Economics" -


Cassandra said...

“The 10 Cannots"

Why the far left’s ideas about building the economy from the bottom up will not work is best debunked by William J.H. Boetcker, a minister and outspoken advocate for liberty in 1916. He published a pamphlet entitled “The 10 Cannots"

"The 10 Cannots:"
• You cannot bring about prosperity by discouraging thrift.
• You cannot strengthen the weak by weakening the strong.
• You cannot help the poor man by destroying the rich.
• You cannot further the brotherhood of man by inciting class hatred.
• You cannot build character and courage by taking away man’s initiative and independence.
• You cannot help small men by tearing down big men.
• You cannot lift the wage earner by pulling down the wage payer.
• You cannot keep out of trouble by spending more than your income.
• You cannot establish security on borrowed money.
• You cannot help men permanently by doing for them what they will not do for themselves.”

Why would any leader want to take away the entrepreneurial spirit of America except to destroy it?

James Higham said...

I've made a few suggestions for Britain.

Merry Christmas, Cassandra.

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