Thursday, March 24, 2011

Top 10 Keynesian Ways To Boost The US Economy

http://www.zerohedge.com/article/guest-post-top-10-keynesian-ways-boost-us-economy

In all seriousness, how can any economist interpret the tsunami disaster as economically positive without logically supporting the controlled demolition of the United States? How would the results not equate? This is the irrationality of Keynesian models. Regardless of debt levels, inflation levels, natural disasters, inventory gluts, etc. the answer to economic problems always culminates in further spending.
There can be positives and negatives to spending. During the Reagan years, the economy was not over leveraged, so spending created a net positive for growth. But when the economy is over leveraged (including governments) like it is today, and like it is in Japan, both destruction and spending can be catastrophic.  When inflation accelerates, further spending becomes the problem and not the solution.

Many economists would laugh off my attempt at sarcasm with the top ten listed above, but inwardly their economic theories serve to justify such irrational policies, only they couch their theories under academic names.  Debt spending can work for awhile….but it cannot work forever.

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