Obamanomics fails, but it’s always our fault
In an earlier post, we discussed the utter failure of Keynesianism to produce results that are demonstrable. After almost a century, they’re still relying primarily on their insistence that they’re correct as proof that they’re correct.
“The green regression line highlights the most important takeaway from this chart: that there is no obvious relationship between a decrease in government spending and a decrease in GDP. Keynesians would expect the line to slope upward; in fact, it slopes slightly downward. But the slope of the line is not significantly different from zero […]
The theory of Obamanomics requires us to accept as gospel that government spending produces a multiplier effect that increases economic output and employment. When it fails to produce the desired results, we are always at fault for not letting them spend more.