Enough with the Keynesianism, already

The Denver Post editorial board isnt exactly known for its rock-ribbed conservatism, but today, they have joined the small-government bandwagon. The editorial calls for an end to Keynesian interventions that have clearly failed, and instead an effort to restructure government to something we can afford. In Colorado, that call may mean trouble for Democrats looking to return to Washington, as their leadership so far is offering nothing more than a double down on the very policies that the Denver Post blasts in it's editorial, today...

Read more: A referendum on the economy - The Denver Post http://www.denverpos...s#ixzz0xy1pihgK


The Keynesian theory has fizzled, indeed just as it did when tried in the 1930s and again in the 1970s. Government seizure of capital for redistribution makes less efficient use of the capital than the market does, for all of the obvious reasons, and a few less obvious. Among the latter, private capital works more quickly; the Porkulus funds took far too long to have any impact, as critics warned when Congress and Barack Obama demanded almost $800 billion in borrowed money for it.

But its not just the Keynesianism that is causing the problem, and the Post strongly hints at the issue. Under Obama and a Democrat-controlled Congress, regulation has exploded, much of it ambiguous and arbitrary. ObamaCare is the biggest example; the bill contains numerous references to rules that the Secretary shall determine, leaving businesses without any firm path to plan for future expansion. Cap-and-trade and Card Check, which are still sitting on deck, will introduce not just higher costs but even more ambiguities and uncertainties into the mix, and the result will be capital flight, recession, and perhaps worse.

This election, the Post concludes, is a referendum on the economy. It should also be a referendum on federal arrogance and executive competence.

http://hotair.com/ar...ianism-already/

So much for "trickle up economics" AKA "I'm waiting for the unemployed guy down the street to give me a job. Obamanomics"

 

They forgot to add that investors are finding investment in the US stock market as increasingly risky. My percentage of total assets of domestic stocks in my 401K is at an all time low. I am thinking of increasing it in October hoping for a 1st Tuesday in November boost. Hopefully the Republicans will return to the neo-classical (also called neo-liberal and neo-conservative) economics of Barry Goldwater and reject the Keynesian philosophy that has dominated both parties in the post New Deal era.