Obamanomics: Trillions for Nothing

 

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Another fine, and timely, econ 101 video from the Center for Freedom and Prosperity.  When future historians write the history of the Obama administration, and what a sad farce that tale will consist of, I think they will stand aghast at all the borrowed money poured out by the Federal government with virtually zero positive impact on the economy.  In regard to Keynsian economics, the Obama administration is proof that one of Karl Marx’s maxims has proven to be a largely accurate observation on human affairs:  Hegel remarks somewhere that all facts and personages of great importance in world history occur, as it were, twice. He forgot to add: the first time as tragedy, the second as farce.

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6 Responses to Obamanomics: Trillions for Nothing

  • Keynes v Hayek – What a brilliant piece of parody.
    Couldn’t help smiling about the Security guard at the door doubling as a proctocologist :-)

    Listening to what Friedman said, its a pity Keynes didn’t live a little longer. In any event, people take what they want from those who propound theories and become famous, and use those pieces of the theory to suit their own ends, whether or not they fully understand them.
    Greetings, Mr. Obama.

  • Don the Kiwi:

    Greetings from occupied America.

    Re: proctology. I did my post-doctoral field work reading “vox nova” blog. Thank Heaven I don’t need to do it any longer.

    I read that late in his career, Keynes attended a conference of economics egg-heads. He said that he was the only one present that wasn’t a “Keynesian.”

    Keynes would have had Obama and progressives pegged: “How anybody, or any system, so dull and illogical could have exercised such influence over so many . . . ” will be a subject for future historians, or space aliens exploring the ruins of mankind.

  • There is one way federal spending can have stimulative effect on the economy and that is increasing defense spending. Before I go any further. I must issue the big fat disclaimer that I work for the DoD (Navy exactly) as a civlian employee.

    But the defense department is the only federal agency that creates meaningful private sector jobs. I mean the military doesn’t build its own tanks, planes or ships. Or even guns bullets, vests, or even uniforms. And we need a much bigger military, especially a bigger blue water Navy. Our enemies are on the move militarily, China is growing its blue water Navy while we are cutting ours to the bone. Russia is on the move and of course Iran is nuking up. Serving this need would provide a much needed boost to our economy, especially in areas where there is a concentration of military bases and where there are manufactuers of military equipment. There is actually some historical precedent for this: it was the WWII ramp up of military production that brought us out of the Depression, not FDR’s New Deal, which actually prolonged the Depression.

    Now, there would be some side effects to this. One, would be waste. After 28 years in the DoD employ, if you include my eight years of active duty in the Navy, I know a thing or two about waste in the defense department. After all, it is part of the Federal Government. The other is an increase of federal employees in the DoD. But the net benefit will be well worth it.

    Unfortunately. this is something even Paul Ryan doesn’t seem to understand. For him to talk about the need to cut defense spending in the same breath as entitlement reform during last year’s debt ceiling debate demonstrates this. The prospective 500 billion cut viz sequestration (thank you John Boehner and Barack Obama) in addition to the already draconian Obama cuts will not only have a chilling effect on security as well as our economy.

  • My father, who was a veteran of WWII and wisely frugal, often tried to explain ‘that is increasing defense spending’ because the ‘defense department is the only federal agency that creates meaningful private sector jobs.’ Honest work for honest pay. He was adamant that the business of government was to both improve the country’s travel ways for private economic pursuits and protect the country from waste and danger – and not its business to interfere in private lives. Everyone would have a chance to work and live because ‘money can’t grow on trees’.

    It is insane to give and lend bundles of nothing or borrow what can’t be repaid. Someone someday will not get what is coming to him and grow angry. The financial industry has jobs that are based on nothing real because there is no accounting for a government of broken or no budgets, insider personal gain/stealing, dishonesty, and so on. No concrete evidence or no policing. Look at some of the career politicians and their lifestyles – do they also need that paycheck ? If so much of our leaders’ time is spent campaigning for donations, then it proves they know the value of a dollar when it’s for personal gain.

    I agree that defense and interior are a place for job growth with substance.
    A minor example learned while working as auditor (bean counter) for an aerospace contractor:
    a widow wanted to stay home to raise her children so she fed and educated them by sewing plain bags for machined parts as an independent contractor. That enterprise amazed me.

    Old sound buildings are being closed just because the location and cost of rewiring and updating the facilities costs money. Instead, places with no character are built that cannot withstand time. Mall open and then close, while shops disappear.
    Trees planted along highways are being strangled and killed by vines that could easily be managed by workers. Schools – unspeakable waste. On it goes everywhere that has a skyrocketing cost.

    I can almost hear him as to the 2012 wreckage. His generation had kids who rebelled, took a left turn, are making laws and demanding to be tolerated – but can’t manage to do the same.

  • “Eat when you’re hungry.
    Drink when you’re dry.
    If the sky don’t fall in,
    You’ll live ’til you die.”

    From Zerohedge (warning: pervasive bearish sentiment) blog:

    “Marc Faber, . . . , remains very bullish on gold. In another excellent Bloomberg interview, Faber said that ‘the trend for gold prices will be steady but the trend for the dollar and other currencies will be down. So in other words gold in dollar terms will trend higher.’ ‘How high it will go, you will have to call Mr Bernanke and at the Fed there are other people who actually make Mr Bernanke look like a hawk and so they are going to print money.’ Faber is on record as to the importance of owning physical gold and he again warned about the importance of owning gold but not storing it in the U.S. ‘You ought to own some gold but don’t store it in the U.S., the Fed will take it away from you one day,’ Faber astutely noted. He said that Bernanke is a money printer and this could lead to massive inflation and the Dow Jones at 20,000, 50,000 or 10 million. Faber cheerily predicted that the ‘the Federal Reserve’s monetary policy will destroy the world’ and ‘eventually we will have a systemic crisis and everything will collapse.’”

    N.B. the prophesied confiscations. It would not be limited to gold. Your IRA and 401k are in their sights.

    Pray for the best. Prepare for the worst.

    Cheers!

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