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Politics

Obamanomics fails, but it’s always our fault

Posted: June 7, 2012 at 11:30 am   /   by

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.

On the other side, they have a fair amount of actual data:

 

“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.

Christopher Cook
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Christopher Cook

Managing Editor at Western Free Press
Christopher Cook is a writer, editor, and political commentator. He is the president of Castleraine, Inc., a consulting firm providing a diverse array of services to corporate, public policy, and not-for-profit clients.

Ardently devoted to the cause of human freedom, he has worked at the confluence of politics, activism, and public policy for more than a decade. He co-wrote a ten-part series of video shorts on economics, and has film credits as a researcher on 11 political documentaries, including Citizens United's notorious film on Hillary Clinton that became the subject of a landmark Supreme Court decision. He is the founder of several activist endeavors, including AnyStreet.org (now a part of Western Free Press) and Liberatchik.com. He is currently the managing editor of and principal contributor to WesternFreePress.com.
Christopher Cook
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Comments

  1. […] of our earlier posts on Keynesianism/Obamanomics’ failure to produce jobs or economic growth, even though it claims that government spending is essential to […]