Sunday, March 10, 2013

The Genius-But-VERY-Wrong Keynesians

Well, I call them "Genius" only because they can't imagine that they're really, really, stupid.

Headline unemployment is now 7.7%.

...In January 2009, Team Obama economists predicted that the unemployment rate by 2013 would be 5.1% (and the economy would be booming at 4% annual growth). Heck, even without the stimulus, they thought the jobless rate would be down to 5.5%. That’s a big miss...

But we still have drive-by yokels telling us that the stimulus is working and that US bonded debt is irrelevant because, after all, we pay ourselves the interest.  (At near-0%, who gives a damn, by the way?)  Oh, yah, and 'corporations roll debt all the time, so the USGummint should do it too.'

.....forgetting that 'corporations' serve entirely different purposes than does Gummint...and that bond-rolling happens ONLY because the particular corporations actually EARN money, not just run up debts.

But that's a bit complex for the Genius-But-Very-Wrong Keynesians.


J. Strupp said...

The only thing you get right about this post is that Obama's economists seriously underestimated the negative impact to AD following the 2008 financial crisis. Keynesians were quite vocal about this mistake at the time and, of course, I mentioned this on this very blog back then as well. But I'm sure you and Ticker were too busy telling me about spiking interest rates and hyperinflation to remember though.

Second, there are no Keynesians telling you that stimulus is working. The positive effects of the modest ARRA ended a long time ago. A simple FRED data search would show that contractionary fiscal policy has been providing drag to GDP ever since.

Last, I never suggested that corporations and the government serve the same purpose. I leave that to uninformed Republicans who constantly run out of touch businessmen for President. All I said was that, like corporations, the U.S. government has the ability to rollover debt in perpetuity and will continue to do so.

Dad29 said...


"..ability to roll over.."

Sure. Because, after all, the Fed can monetize said debt (0 to 1.5T in only 4 years!!)

1) It hasn't worked to "spur" shit.

2) Nobody but the Fed would buy that stuff.

Ergo, Strupp claims that "it's all good, no problem-o!!"

Smoke another one, fella.

Anonymous said...

Josh Strupp is a real fucking moron. No wonder he's the shittiest salesman at Lannon Tank.

J. Strupp said...

That one's actually hilarious for so many reasons, anon!"