Newsletter subscribe

Politics

Obamanomics fails, but it’s always our fault

cutting_spending_vs_gdp_change-keynesians
Posted: June 7, 2012 at 11:30 am   /   by   /   comments (1)

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.

Comments (1)

write a comment

Comment
Name E-mail Website