Keynesian Economics Is Wrong: Bigger Gov't Is Not Stimulus

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

[metsfanshea07]

When they show unemployment at 17.2% during the 30s at 4 47 they fail to mention that it fell from 25% when Roosevelt took office to 2% when he left, and for those who say it was all word war 2, it had already fallen significantly by that time. By taxing the upper class higher than than the rest of the country and spending that money on public works projects, jobs are created and the middle class grows. Also, remember that every time government deregulates the banks, they collapse the economy.

[randomnessandfun]

WW2 is the greatest example of Keynesian economics with 100% employment

[keepaopenmind]

PS Ron Paul 2012!

[keepaopenmind]

John Maynard Keynes was a genius. He discovered something as important as Einstein. He showed how to smooth out the business cycle, how to prevent booms and busts. Booms aren't so bad, but busts are, as we are now experiencing. Blaming Keynes for politicians misusing or misapplying his ideas is like blaming Einstein for the atomic bomb.

[WeirdCrazyShortGuy]

Sorry, I accidentally pushed the "dislike" button. Great video!

[StateExempt]

@metsfanshea07 - Do you honestly believe a stock market crash is an example of something that is good for business? And what services are you referring to?

[metsfanshea07]

@StateExempt You assume that what is most profitable for business is automatically best for the country, but that's not true. When the stock market falls, no private investors want to lend money in a bad economy, so the government is should be there as the one constant in the economy. Also, there are some services that are unprofitable but necessary, which the government should provide.

[keepaopenmind]

@magicidiot12345 To some extent it creates soldier jobs. But most of the soldiers were living in the US before, where they would spend their pay. It doesn't create wealth. In general spending on the military does not create wealth.

[magicidiot12345]

@keepaopenmind

it creates soldier jobs

[StateExempt]

@metsfanshea07 - These "jobs" do not produce true wealth at a greater rate than what the private sector alone would allow. Resources are allocated on the basis of political pull rather than consumer demand.

[keepaopenmind]

@magicidiot12345 I doubt that it helps the economy very much, except for those who directly get the trillions, such as Haliburton and GE. It certainly doesn't help the economy as much as spending on wealth producing projects in the US. Is it part of the "Austrian school" of economics to believe spending overseas helps the domestic economy?

Ron Paul 2012!