Federal spending has now been flat for several years. Discretionary spending has been cut. Quantitative easing has been ended. According to every Keynesian on the planet, we should be a in a recession right now.
I found this story amusing, but not for the reasons Vox intended. In 1939, Franklin Roosevelt moved Thanksgiving back a week in the calendar. Vox goes into the culture war that erupted but I was more interested in his motivation for doing so:
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Since the late 19th century, Thanksgiving had traditionally been celebrated on the final Thursday in November. But in 1939, Roosevelt’s seventh year in office, that last Thursday fell on November 30. And
A couple of years ago, Japan’s Prime Minister Shinzo Abe instituted a program that made Keynesians everywhere wer their pants with joy. Abenomic consisted of fiscal stimulus (i.e., spending), quantitative easement (aka inflation) and structural reform. The result?
Japan is now in a recession. Oh, and their debt is up 230% of the GDP.
Now doubtless the Keynesians will have explanations for it. Keynesianism can never fail; it can only be failed. The Hoover … Read more
Two economic numbers have come out in the last few days. The first was that the economy grew at an “unexpected” 2.8% rate in the third quarter. The second was that October jobs came in at 204,000, which is almost … not unhealthy? 60,000 jobs were added to previous months. U-6 was up a bit but is still several point down from its peak and labor force participation continues to fall.
Caveat time: even … Read more
Veronique de Rugy:
I don’t quite agree with de Rugy here on the efficacy of the later Bush tax cuts, but I think she’s more or less on the money. The Keynesians have yet to explain why the biggest spending President in American history (so far) who ran up the biggest debts (until Obama) and slathered the nation with demand-side tax cuts failed to produce an unending economic boom.
We can’t pretend that Obamanomics started … Read more
OK. So yesterday, Obama said this in an economy speech. I’ll give the entire quote so you don’t think it’s out of context:
We’ve created 4.3 million jobs over the past 27 months. The private sector is doing fine. Where we’re seeing problems is with state and local government, often with cuts initiated by governors or mayors who are not getting the kind of help they’re accustomed to from the federal government.
(Aside before I … Read more
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Recently, two more countries have felt the bite of Keynesianism. Today, the credit ratings agency Fitch downgraded Japan’s economy and the AP reported that the Argentinian economy is likely to decline sharply. While Japan and Argentina might be different kinds of economies
Read this. Then read this. The first is Paul Krugman praising Argentina’s “economic model” of plundering, theft and deception, claiming its performance has been comparable to Brazil’s. The second is Juan Carlos Hidalgo’s response pointing out that Krugman (1) uses Argentina’s official inflation numbers, which economic journals have stopped using because they are transparent lies; (2) starts his analysis two years after Argentina’s recession began; (3) compares Argentina with a relatively poorly-performing country … Read more
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There were too many times when RP simply piled polemic points on top of each other and stopped making a sequential argument. He overrates the costs of inflation, including in the long term, and for a believer in the market finds it remarkably non-robust in
In a move that doesn’t surprise people like me a bit, and which the LSM will simply ignore and thus allowing others that feel unless the LSM says it word for word, it isn’t so, we now find out that the
stimulus patronage bill has had it’s price tag increased and its positive impact majorly downgraded:
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Recovery: After nearly all the stimulus money has been spent, the Congressional Budget Office now admits it