If you don’t know what Keynesian Economics is, let me break it down. Back in the 1930’s there was an economist who said that the reason we had a depression was that we did not spend ENOUGH.
This goes contrary to modern economists who say that FDR’s New Deal actually deepened and lengthened the Great Depression.
Of course, because Republicans were in power, and because the economy turned south, the current administration says that we cannot follow the old rules. We must be bold. We must spend MEGA money regardless of the short term deficit. In short, we must be Keynesian.
There is no talk, of course, about the notion that the liberals in congress strong-armed lenders into giving loans to very risky people. As a result, they inflated the housing market to the extreme and it all cam crashing down.
I want you to go watch this video, posted by our friends at the Jawa Report. It says it all, with regards to explaining Keynesian ideas and what is about to happen if we don’t put pressure on congress to stop this idiotic spending bill.
(WARNING: There three parts, each is long, and it includes the commercials… D’OH!)
God help us.
The revolution is at hand. Will you be a leader or a follower?
I agree that the Government is wrong here and basically "makes a mess". Yet, there is a statistic that bears review and I want to further study it. In 1928, the top 1% were taking in over 20% of the income. The Great Depression occurred at that time, of course. I was just reading that for the first time since 1928, in 2006, this figure of history repeated itself. The top 1% again had their income rise to become 20% of the income.
ReplyDeleteI do not agree at all with these theories that are being thrown around right now and the kind of spending they seek to do.
But here is a real problem. (See my Go Sarah!! blog.) If the top 1% are gaining that much money - they really don't spend money like you and I do the same ways. It could create an imbalance in the overall economy. It could be a symptom of something. What the people who are for the spending measure are trying to do is to compensate for the "holding" that is taking place by the top 1% - because when they take 20% of the income in - again, they don't spend it like you and I do. It's not available for us spending it amongst ourselves. I'm going to explore that further. I think it's an important statistic and it has a direct correlation back to 1928... and I see the next Great Depression coming. that 1 taking 20% of the income beginning in 2006 as compared to that same thing occurring in 1928 creates a strong factual basis for defining this figure as symptomatic of a soon coming Great Depression.
Anyway, I'm going to put on my thinking cap. Let me know if you find info on this to study. :)