Big Government Is Not Stimulus: Why Keynes Was Wrong (The Condensed Version)

The CF&P Foundation has released a condensed version of our successful mini-documentary explaining why so-called stimulus schemes do not work. Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.

Category:

News & Politics

Tags:

• keynes
• keynesian
• spending
• stimulus
• government
• flat
• tax
• fair
• CFP
• CF&P
• center
• freedom
• prosperity
• quinlan
• mitchell

[FatTony726]

@distortion0 More public spending is Bigger Government!

[s0beit]

@Distortion0 The more the government spends the bigger it gets, the only way a government can commence public works of that kind is if it's already large enough to do it in the first place.

[cordrenkin]

I think its pretty well established that in your typical recession, the Keynesian pump priming doesn't work too well with low multipliers and crowded out investment. In the liquidity trap/balance sheet recession like now and Japan's, the collapse of private investment and spending can be offset with government spending until debt overhang is gone and the private sector take all that liquidty in the system and borrow/invest/spend again.

[Distortion0]

No one claims that bigger government improves growth. Keynesians claim sound public spending can improve growth. Strawman.

[spark300c]

@grampacanuck no it did not but new deal policies were stop and people save up. America was the only industrial economy left standing undamaged. this let to boom until developing counties could complete in 1970's

[grampacanuck]

Yes, the world's largest public works project, known as World War II, didn't stimulate the economy.

[shotsky94]

Keynesian Economics is an oxymoron

[Sexisttroll]

@tepstolog the repeal of the glass steagall act didn't cause the housing collapse nor the recession... as a matter of fact the glass steagall act actually ties the government even more with wall street by being forced to bail out their depositors under the FDIC contracts... regulations like that along with CRA and other government regulations caused the collapse... that along with the FED setting interest to low... we need to stop regulating the markets since its causing the collapse...

[tepstolog]

Only the FDR Glass-Steagall principle will separate commercial from speculative banking, thus freeing the nation from obligations to Wall St. and the City of London, and re-establishing a credit system for rebuilding the nation.

H.R. 1489, Return to Prudent Banking Act of 2011, is before the House of Representatives, which aims to revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so called 'Glass-Steagall Act

[ajsaccount1991]

Keynes was wrong.