A great discussion of why Keynesian economics fails, as illustrated through our stagnation.
Did you sing Happy Birthday?
The nation just “celebrated” the fifth anniversary of the signing of the so-called American Recovery and Reinvestment Act, more commonly referred to as the “stimulus.”
This experiment in Keynesian economics was controversial when it was enacted and it’s still controversial today.
The Obama Administration is telling us that the law was a big success, but I have a far more dour assessment of the President’s spending binge.
Here’s some of what I wrote about the topic for The Federalist.
The White House wants us to think the legislation was a success, publishing a report that claims the stimulus “saved or created about 6 million job-years” and “raised the level of GDP by between 2 and 3 percent from late 2009 through mid-2011.”
Sounds impressive, right?
Unfortunately, these numbers for jobs and growth are based on blackboard models that automatically assume rosy outcomes.
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