Posted in Austrian Economics, Economy, Keynesian Economics, National Debt, Obama, Paul Krugman, tagged austrian economics, economy, keynesian economics, national debt, obama, paul krugman on June 28, 2012|
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Recently Josh Bivens penned an editorial for CNN asserting that, “It’s OK to add to debt to grow jobs.”
In the past three and a half years we have gone 5 trillion into new debt and we’ve lost 4 million jobs net. If we had simply used that 5 trillion to hire people directly we could have paid 20 million people 60 thousand dollars a year to each be employed for all 4 years Obama was in office. Instead, we have minus 800 thousand employees per trillion spent. (As Reagan said, “It would seem that someplace there must be some overhead.”)
Yet liberal academics such as Krugman and Bivens keep advocating Keynesian economic theories and asserting (paraphrase), “If only we had spent a little more money, then our theories would have all worked out…” Economists like this always have a reason to offer for why reality is wrong and why their theories are still correct. But we aren’t dealing with a theory here. Minus 800 thousand employees per trillion dollars of debt spending is reality.
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I saw two editorials today by liberal Keynesnian economists which leave me thinking they have completely lost grip with reality. One was titled, “Obama Has a Jobs Plan. Romeny Doesn’t.” The other was titled, “It’s OK to Add Debt to Grow Jobs“.
Let me make this very simple. Obama’s Jobs Plan has only one number that counts. In the past three and a half years that Obama has controlled the economy – and for two of those years he enjoyed the triumvirate of a Democratic House and Senate, and got pretty much everything he wanted – the nation has added a net gain of minus 4 million jobs.
We have gone 5 Trillion dollars into debt and the number of Jobs we’ve grown is negative 800,000 positions per trillion dollars spent. That is the truth.
That is Obama’s Jobs Plan.
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