“There is no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy.”— PRESIDENT-ELECT BARACK OBAMA, JANUARY 9 , 2009
With all due respect Mr. President, that is not true.
Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan’s “lost decade” in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policy makers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.
There are over 200 signatories to the add, including Nobel Laureate economists and other experts in the field.
Look, the bottom line is not even the Japanese were able to revive their economy with government stimulus, and their stimulus contained actual stimulus, not $800 Billion in contraceptives, smoking cessation, and carbon capture contests.
On that last note, Chairman O’s Regime says they can’t be bothered to weed out the bad spending:
Jake Tapper of ABC… asked White House press secretary Robert Gibbs why the president can’t [cut the pork out of the bill], like the funds set aside for “smoking cessation” efforts. (Some portion of $500 million, by my reading.)
“Let’s focus on the larger picture” is Gibbs’ mantra. “If we get focused on this number and that number, and two-one-hundreths of one percent of the spending . . . while we’re discussing this, in the past forty-eight [hours], 70,000 people have gotten a pink slip.”
Tapper: “Why not take the money marked for ‘smoking cessation’ and give it to people who are out of work?”
Gibbs: “The vast majority of this bill does that… (This is a Big Fat Lie, BTW). . . We can’t afford to wait. We have to act.”
So, since reckless, irresponsible private debt accumulation got us into this crisis, we have to believe that reckless, irresponsible public debt is supposed to get us out.
Just like the cure for AIDS is sharing more needles with hookers.
(Hat Tip: Nice Deb)