Virtually every modern conservative theory of economics has been proven wrong

Consider the four pillars of conservative economics:

First theory: Expanding the monetary base and engaging in deficit spending will cause interest rates to skyrocket and inflation to increase.

Reality: The Fed has engaged in three rounds of quantitative easing and the current round isn’t going to end until after unemployment is back to normal, so they say. I think I’ve seen estimates that the monetary base has been expanded by more than a trillion dollars already and there’s more of that to come for at least four more years. Rather than increasing, interest rates have fallen and core inflation hasn’t budged.

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