Friday, October 2, 2009


A Harvard University professor of economics has a working paper for the National Bureau of Economic Research that shows no evidence of a Keynesian 'multiplier' effect.  Keynes' assertions from nearly 75 years ago are the foundation of Democrats' massive spending of U. S. taxpayers' monies to try to control the normal ups and downs of an economic cycle.  See the entire article in the Wall Street Journal, Thursday, October 1, 2009, page A 23. []

As it has for years, Keynes' and the Democrats' contention that government spending helps recessions and depressions has been proven false.  But never to worry about facts and truths, President Obama spends, spends and spends money he has to borrow from China.  And, like the Cash for Clunkers, is gone with no tails of success. 

It has also been proven without a non-political doubt that tax cuts incent growth.

But no matter, Democrats will do anything, anything to get reelected and gain and retain power, raw power over others.

Finally, politicians should simply admit the truth: that they are essentially powerless to control economic cycles and that citizens should be prepared for them to occur once in a while by having some savings and manageable debt levels.

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