I'm adding a link to this post HERE today, Sept. 1, 2011. The paragraph below emphasizes the critical disaster of FDR's policies using Keynesian economics. Why the American public is not screaming at the top of their lungs at Obama, his administration, Pelosi, Reid, and all of congress, is beyond me. The definition of insanity is doing the same thing over and over and expecting a different result. (Einstein) Obama is just this stupid and / or destructive... and Americans are suffering for the election of the most incredibly disastrous President that ever walked into the White House.
"After three years of nearly $4 trillion of Obamanomic stimulus consisting of little more than, foolish pork, union payoffs and bailouts, the economy shows little sign of improvement. "If only we had spent more." In fact, during the 1930s, we did spend more, much more. It too failed. Henry Morgenthau, Jr., FDR's Treasury Secretary, said the following in 1939 to the House Ways and Means Committee: "We are spending more money than we have ever spent before and it does not work. I want to see this country prosperous. I want to see people get jobs. We have never made good on our promises. I say after eight years of this administration: We have just as much unemployment as when we started and an enormous debt to boot."
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Hi everybody! As some or most of you know, I'm an artist by profession. I've been a lot of things actually; wife, mom, red cross volunteer in my twenties, art student and president of the local art guild, treasurer of the Humane Society for a while in my thirties, 'single' mom for thirteen years, achieved a real estate license along the way, business owner in my forties and early fifties, and now a fine artist and political blogger. I've lived in Ohio, Colorado, California, and North Carolina. In short, I've been around the block for a while....and that sounds like I'm older than I wish to imply, but ......there it is.
This post is for my kids. My son is 36 and my daughter is 32. They are smart and accomplished and I adore them. I also have three adorable grand-children who are too young to appreciate this information, but I trust my children will pass their knowledge along to them.
In all of my education and my children's educations, we did not study political consequences in economics. Our economic study was targeted toward what we needed for our personal lives. My daughter, who is in the banking industry, has more of the big picture than the rest of us, but her studies were practical applications in banking and not focused on the political manipulations of the government.
So now we are looking at our country being destroyed by economic theory that, by ideology, I disagree with on the grounds of "big government" intervention, destruction of the dollar, and some shadowy figures in the Fed pulling strings jerking us all around. Today I went to my friend Mr. Google and typed in a search on "why is Keynes wrong." A video came up that is 4 minutes long and is the short version of historical mistakes based on Keynes economics. It shows the basic outcomes of economic insanity...and I feel obligated to share it with my children and whoever else reads my opinions here. I hope you find this helpful. When people ask you why you disagree with the economic policies of the Obama administration, the Bush administration, Congress, the Fed, and the Treasury's guy Geitner.....here is your answer!
Throwing government money at the country is not the answer to anything. It is like incubating a parasite that sooner or later is going to eat the host from the inside out. Pass this along to all of your children and your friends. Share the knowledge!
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Dear Cheryl,
ReplyDeleteLovely site! Congratulations on all your kids and kids kids!
I would agree on some negatives about Keynes' followers; K has been misinterpreted to mean 'spend at all times' rather than what he meant, namely 'spend during a recession' (see What do you know about Keynesianism? - http://www.moneyizor.com/category/john-maynard-keynes/).
Present-day military funding by the govt is Keynesian (http://en.wikipedia.org/wiki/Military_Keynesianism) and I hope the Tea Party unilaterally condemns it.
John Kenneth Galbraith said about the rebound of the economy from wartime spending (WWII), "one could not have had a better demonstration of the Keynesian ideas".
I see a little tossing out the baby w the bathwater tho - the statistics for the great depression in this video are a little misleading b/c averaged out over the entire decade: the New Deal in 1933 marked the end of the GDP's downward direction and the roosevelt years before the war only showed steady recovery in the GDP and an unemployment decrease of 25%. (http://en.wikipedia.org/wiki/New_Deal). Keynesianism too.
Interesting point of view, though.
I think abs no govt spending is of course no solution either (that could be called 'Asocialism') - hospitals and public transportation shouldn't be run for profit, should they?
Mr. Humbles, thank you very much for stopping by and commenting here.
ReplyDeleteI have two more quotes for you from Galbraith:
"Marx profoundly affected those who did not accept his system. His influence extended to those who least supposed they were subject to it."
"In the assumption that power belongs as a matter of course to capital, all economists are Marxians.
So much for Galbraith.
As for FDR: He was without apology a Fabian Socialist. And if you would study what Fabian Socialists actually thought of humanity, you might reconsider your opinion of how "beneficial" he was. I could not disagree with you more.
I have absolutely no problem with hospitals being run for profit. In fact they already do run on astronomical profits, but cloak them under the guise of non-profit status. As for transportation, why not for profit? I don't believe in subsidized transportation, frankly. Competition would necessarily drive the costs and fare prices down and there would not be a reason to subsidize transportation. As it is, a light rail ride costs the taxpayers some 11.5 times what the rider is paying. And of course, it is a monopoly run by government. http://hamptonroads.com/2011/08/charlotte-vs-norfolk-lightrail-lines-same-track "Since LYNX opened, he said ridership has declined, costs have escalated, and the sales tax to pay for it has shrunk: "There are very serious issues going forward." "He found it had minimal impact on road congestion, diverting about 4 percent of peak-hour travel, and that the actual cost per trip is $6.90 when factoring in construction and operating costs, of which riders pay about 60 cents."
Defense of the nation through military is a completely different thing entirely. Of course the monetary support for the military is and should be a taxpayer obligation. But since nearly 50% of the population is not paying taxes, those people are being defended on the backs of everyone else.
My children and grandchildren are inheriting a disaster brought on by economic insanity by our federal government. No I do not think Keynes' policies of "stimulus" spending and bailing out banks and corporations are in the least viable. When the government creates policies that damage the economic viability of the nation, it is the citizens who pay the price. The voters have had little to say on this, being ignored for the most part for decades at least, if not longer.
So...no not throwing the baby out with the bath water. Wrong analogy. Trying to save the Constitution from Fabian Socialists, Crony Corporatists, Fascists, and all other traitors America.