There are many warning signs that you are about to read of conservative twaddle when it identifies the author of the article as a pround memebr of the the wing-nut welafer circuit. In this case a visiting scholar at Stanford University’s Hoover Institution. The Hoover specializes in publishing verbal manure as though there was a shortage. They push it regularly without shame. Your average ten year old lemonade stand operator knows more about economics, but far less about insidious lies. Which brings us to Professor Meltzer H. Meltzer writing at the Rupert Murdoch rag the WSJ, Four Reasons Keynesians Keep Getting It Wrong
Those who heaped high praise on Keynesian policies have grown silent as government spending has failed to bring an economic recovery. Except for a few diehards who want still more government spending, and those who make the unverifiable claim that the economy would have collapsed without it, most now recognize that more than a trillion dollars of spending by the Bush and Obama administrations has left the economy in a slump and unemployment hovering above 9%.
Why is the economic response to increased government spending so different from the response predicted by Keynesian models?
First, did this dipstick poser bother to look at any data on the recession. Why bother with facts when you have garbage to write. Democrats saved the economy from tanking even more. And let’s all conveniently forget that it was conservative polices that got us into this mess in the first place. Tax cuts that would pay for themselves? I have a truck load of fairy dust for sale for anyone who stills believes that. And remember that three trillion dollar war Republicans put on your children’s credit card.
Meltzer is a Very Serious Person or advocate of austerity or give the middle-class the shaft while we wait for the economy to turn around. Guess what, austerity is not only not working but risks another recession. England has jumped on the Very Serious Person bandwagon and is sinking. Where as New Zealand and Australia have not and while they are not enjoying a new era of economic prosperity, at least they’re not losing ground. The UK Fundamental Picture Supports a Weaker GBP vs AUD, NZD
The problem with the UK economy is tight fiscal policy as the government continues its austerity drive, along with increasing unemployment, high inflation and low wages, which are squeezing consumers’ purchasing power and weakening domestic demand.
The implication to consider from Mr. Fisher’s comments is that even the extra quantitative easing announced in early October may not be enough to change the momentum of the economy and if economic conditions do not improve more quantitative easing may be necessary. He also did say that if conditions improve the central bank could cut short its bond purchases. The former seems to be more likely than the latter and therefore the prospect of even more money printing by the central bank should weigh on the pound in the coming months.
And more here, The Crumbling Case for Austerity
Austerity doesn’t work:
The Crumbling Case for Cutting Spending to Stimulate the Economy, by Chad Stone, CBPP: Empirical support for the view that sharp, immediate cuts in government spending would be good for the U.S. economy was never strong, and it’s getting weaker.
The Economist is on the case, highlighting two new studies showing that austerity and growth don’t mix in the short term. …
The professor also throws out some of the same uncertainty/regulation drivel that has been pouring from the right-wing meme machine for the last year,
Third, Keynesian models totally ignore the negative effects of the stream of costly new regulations that pour out of the Obama bureaucracy. Who can guess the size of the cost increases required by these programs? ObamaCare is not the only source of this uncertainty, though it makes a large contribution.
Meltzer is one of the best examples around for ending tenure for professors. The only place that would would employ mindless charlatans like him are right-wing think-tanks. Obama Wrote 5% Fewer Rules Than Bush
Obama’s White House has approved fewer regulations than his predecessor George W. Bush at this same point in their tenures, and the estimated costs of those rules haven’t reached the annual peak set in fiscal 1992 under Bush’s father, according to government data reviewed by Bloomberg News.
If you figure in inflation Obama era regulations cost less than those of either Bush 41 or 43. Meltzer probably got his predictions for the cost of health care reform from a fortune teller at one of the conservative debates. The CBO estimates health care reform will save the government over a trillion dollars over the next ten years. And yes it is absolutely safe to completely disregard any statistics that come out of the Hoover Institute. Want to repeal health care reform, that will add about $230 billion to the federal deficit by 2021 and leave 30 million Americans without health insurance. There will be a bump in cost to some small business for about a year. After that small business will save money. Meltzer writes a load of pure crap. The WSJ publishes as an editorial, but even editorials must have some basis in fact. Note the lack of cries for Meltzer to be fired. Note the editor that let that propagandist crap be published still has a job.
In 2010 every tea smoking conservative wacko campaigned on a jobs creation platform. Every Republican congressional representative and every governor. How many jobs have these Super Conservatives created? Zero. Actually less than zero – House GOP’s “Job Creating” Spending Cuts Destroyed 370,000 Jobs. Its like a political cartoon come to life. You have Democrats on one side laying bricks and Republicans on the other side tearing them down – all the while shouting they love America. You can’t recover from a recession if conservatives are going to do everything they can to make sure we don’t.
I won’t cheat and look up whether Rick perry is pro legalization of marijuana. From the looks of it, he does seem to eat a herbal laced brownie on occasion. Via HuffPo – Rick Perry’s Unusual Speech Performance (VIDEO)
If there is a contest among the conservative presidential candidates to see who can be the biggest buffoon they’re all running neck and neck.
Today on Face The Nation, GOP presidential hopeful Herman Cain claimed that Planned Parenthood wants to “kill black babies” and is part of an organized effort to commit “genocide” against the black community:
[ ]…Cain’s statement about the location of Planned Parenthood clinics is wildly inaccuate. According to a study by the Guttmacher Institute from January, “Fewer than one in 10 abortion clinics are located in predominantly African-American neighborhoods, or those in which the majority of residents are black.”
Politifact previously evaluated the Cain’s claim that Planned Parenthood was created to “kill black babies” and deemed it “a ridiculous, cynical play of the race card.”
In 2004 and 2006 Cain led a radical group that produced radio advertisements accusing Democrats of wanting to kill “black babies.” Cain himself provided the voiceovers for some of the ads.
Cain finally got around to making a definitive statement about women’s health care rights. He is against them. Cain is against a woman being able to make her own decision about what to do in case of being impregnated during a rape, impregnated by her father or other relative or when her life is endangered by carrying a pregnancy any further. Cain is continuing his own much loved plantation theme. Cain believes that women should be treated the way they were before slaves were emancipated and clearly before sufferer. Cain, the plantation master as president. Since conservative keep fighting the Civil War, it would be another victory in pushing the entire union into the dream of being a backwards confederacy.
Roger Simon is a conservative – Roger Simon: Being ‘a little bit racist’ helps in GOP primary
Politico’s Roger Simon says that Republican presidential Rick Perry’s recent embrace of birtherism amounts to a racist “dog whistle.”
“It’s not a ‘fun’ issue to poke somebody on,” Simon told CNN’s Howard Kurtz Sunday. “It is more than a little bit racist. Not everyone who believes it is a racist. It grew out of the belief that a black man could not be legitimately elected to the president of the United States.”
He continued: “Now, why would Perry use that in the primaries instead of saving it for the general when he’s running against President Obama? Well, it’s because being extreme, perhaps, and a little bit racist, perhaps, gives you good bona fides in a Republican primary. It shows them that you are on the same side as they are.”
“So, it’s a bit of a dog whistle?” Kurtz asked.
“Absolutely,” Simon replied.