Keynesian Economics & Gov’t Spending Isn’t Going to Help

This following is an excellent video from the Cato Institute showing the fallacy of a government spending program meant to boost the economy. I got this link from Mark Perry’s excellent Carpe Diem blog. The investing implications are important because if history is a guide the economy will not rebound due to Obama’s trillion spending plan.

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2 Responses to Keynesian Economics & Gov’t Spending Isn’t Going to Help

  1. What policies would a President Edelheit try to enact in this situation?

  2. admin says:

    I would put into place laws that in the future it is not legal to leverage yourself any more than say 10 or 20 to 1 for a start.

    Then, I would purely focus my efforts to recapitalizing the banking system and let the rest fix itself.

    We keep trying to avoid the pain of a recession and the pain of a retrenchment of a debt addicted society. The longer we wait to take the pain, the worse it will be.

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