Tag Archives: Economics

Bringing John Keynes back from the dead (A rebuttal to Rick Kelo and other confused austarians)

Rick Kelo doesn’t understand economics, and he’s not alone. Most of this criticism I’d normally reserve for comments (more), but we’ve reached the point where denial of Keynesian economics is on the same intellectual level as the birther movement, and reminiscent of the Flat Earth Society and climate science denial. Isolated misunderstandings must be rebutted to prevent them from spreading to the larger public where they can do serious damage when adopted by know-nothing politicians and a simplistic media incapable of understanding these issues any better than Rick does.

A painful misunderstanding of the subject, especially in climate science, is always a common factor in these controversial and always unsupported views:

You may never have heard the name John Maynard Keynes, but he was the architect of Too Big To Fail and all the other government bail outs that have flooded the news for the last 5 years.

The modern idea of too big to fail is that America’s largest banks, where wealth has been concentrated at undesirable levels, have become too entwined with risk-heavy investment firms that their failure would cause the entire economy to collapse. That was the actual justification for bailing out Wall Street in 2008, made by Democrats and Republicans like Paul Ryan alike.

Read More →

The John Boehner Fiscal Cliff, and everyone is now Keynesian

John Boeher/spendingThere are a few lingering thoughts I need to get out of my head from the 2008-2012 era, one of them being how Republicans were right that political polling in 2012 was systemically biased (albeit biased against Democrats.)

The other being the many absurdities of the unnecessary and anthropological fiscal cliff (AFC?). What’s missing from the “debate” thus far is how the cliff was almost entirely invented by the Republican Party and represents what — not even two years ago — John Boehner proudly said he wanted and was thrilled to achieve.

Read More →

Federal Reserve decides to print $480 billion to boost economy, and the business sector loves it

Ben BernankeConservatives love to point to the sentiments of the business sector when complaining about Democrats and their policies. They often cite business surveys showing greater than fifty percent saying regulations are a reason why they aren’t hiring, while ignoring other responses in those surveys where those same businesses say that when having to rank their many reasons for not hiring, an uncertain economy in the near future tops the list, while regulations hit the middle or bottom.

If the stock market happens to be down when it benefits them politically, they’ll note that, too. But you won’t ever see them stay true to their interest in measuring the correctness of government policy by looking at the business sector’s response as a leading indicator, because all too often, the business sector tends to love Democratic policy.

Especially when it comes to economic stimulus.

Read More →