The New York Times Goes Keynesian All-In

Keynesian economists have been calling (screaming really) for more stimulus to get the economy moving.  But the GOP deficit howler monkeys won’t agree so we’re all stuck living in a world of stupid.  In an editorial from the Saturday’s New York Times, the editors recognize the ongoing economic struggles facing America.

And the blame falls squarely on the narrow bony shoulders of the Republicans and the Democrats who refuse to stand-up to these economically ignorant bullies.

The way to revive sustainable growth is with more government aid to help create jobs, support demand and prevent foreclosures. As things stand now, however, Washington will provide less help, not more, in 2012. Republican lawmakers refuse to acknowledge that government cutbacks at a time of economic weakness will only make the economy weaker. And too many Democrats, who should know better, have for too long been reluctant to challenge them.

The drag from premature cuts is significant. Waning stimulus spending subtracted an estimated half a percentage point from growth in 2011; this year, cutbacks will very likely cost the economy a full percentage point of growth. That means the best-case economic projection is for a new year of anemic expansion and high joblessness — muddling along with growth of about 2 percent, which is too weak to push unemployment much below its current 8.6 percent.

Yes, the Republican party remains the party of EPIC FAIL.


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9 thoughts on “The New York Times Goes Keynesian All-In

  1. Based on how much the previous stimulus helped there’s no question we need another one!!! The problem with stimulus spending is it only is a band aid for an economy IF used correctly. The problem is the things stimulus money went to was mostly public sector and not where it needs to go which are the job creators the private sector. So in conclusion you can do all the stimulus plans you want your going to get the same result and the same liberal extremest will go into shock and awe when it doesn’t work agian just like it hasn’t worked in the past. Isn’t there a word for that? Oh yeah insanity.

    1. When states counter the stimulus with excessive cuts to public spending (thank you, Governor Walker, another of your “accomplishments”), it’s hard to complain it “didn’t work.” There’s ample economic data to show that, in states that did not opt for the insanity of “expansionary austerity,” the stimulus dollars provided a much needed boost.

      And where do you think the stimulus money went? Do you think that the government went out and hired people? No. It went to programs that funneled money into the private sector to provide services.

  2. You guys crack me up, you know that? Haha. Well the truth is most of the stimulus went to try and help suppport the huge benefit packages the teachers had. In fact just in Wisconsin Doyle said himself (his own numbers) 75% of the jobs created by the stimulus were in the public sector!! I find it funny how you Phil Scarr play the blame game its everyones fault by my own and my parties. I’m surprised you didn’t blame Bush in that last coment good job!!

    1. Mike: When you turn down billions in stimulus money and then cut the budget because you have a faux-crisis to enforce (shock doctrine, anyone?) don’t be surprised when the stimulus doesn’t work in your state.

      BTW, I love it when you ascribe some statement to someone and then provide no link or data to support it. Case in point:

      In fact just in Wisconsin Doyle said himself (his own numbers) 75% of the jobs created by the stimulus were in the public sector!!

      So you will forgive me if, until I see the link and the data, I consider your unfounded assertion disingenuous in the extreme.


    If your refering to Wisconsin as a “faux-crisis” than I believe your sadly mistaken. The reason why he turned down some stimulus was because it was going to be a waste. But, when he asks for money to fix somthing that is actually used and serves a purpose he got rejected. Instead Obama wants to make the money go to little street trains that go no where and stupid bike paths on bridges.

    1. Thank you for making my point that the stimulus worked.

      The Obama administration, as well as Doyle, has argued the economy would be much worse without the stimulus. That argument appeared to be bolstered Tuesday by Wisconsin’s chief economist, who told lawmakers the state’s economy improved as the stimulus kicked in.

      Stimulus works. Always has. Always will. What doesn’t work? Cutting budgets during a recession.

      Why not slash deficits immediately? Because tax increases and cuts in government spending would depress economies further, worsening unemployment. And cutting spending in a deeply depressed economy is largely self-defeating even in purely fiscal terms: any savings achieved at the front end are partly offset by lower revenue, as the economy shrinks.

      Walker’s plan to cut our way to prosperity is delusional. As is the batshit crazy rightwing belief in “expansionary austerity.” It’s been thoroughly debunked.

      One lesson that the world has learned since the financial crisis of 2008 is that a contractionary fiscal policy means what it says: contraction. Since 2010, a Europe-wide experiment has conclusively falsified the idea that fiscal contractions are expansionary. August 2011 saw the largest monthly decrease in eurozone industrial production since September 2009, German exports fell sharply in October, and is predicting declines in eurozone GDP for late 2011 and early 2012.

      Rightwing Economic Thought: An Oxymoron from Top to Bottom.

  4. Phil a country cannot survive with veryone working for the government we need the private sector. Thats just basic economics you seem to not understand.

    1. Mike: When you’re done playing with your little straw men, let me know. I’ll be here.

      Perhaps if you could put your little straw toys aside for a moment and try to read what I and others have written about the positive value of fiscal stimulus on economic growth instead of just responding to the imaginary voices in your head, you might just learn something.

      But I’m not counting on it.

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