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Should the failure of Obama's stimulus finally discredit Keynesian Economics?
Keynesian economics failed to reduce unemployment during the Great Depression, despite massive spending by the gov't. Once again we're trying this foolishness and, big surprise, gov't spending has again failed to reduce unemployment. Can we FINALLY say that Keynesian economics is pure crap, spending hundreds of billions by the gov't does not jump start the economy and does not put people back to work? Or will people refuse to admit Keynesian theory is wrong because that would make Obama look dumb, and therefore be racist?
Mr. Wolf, you're drunk.
16 Answers
- Anonymous1 decade agoFavorite Answer
It was discredited long ago. Yet another example of how liberals don't relate well to facts.
- 1 decade ago
I hope so, but I seriously doubt it. The economy will rebound at a slower rate than it should, but it still will rebound. Unfortunately, President Obama will still talk about the jobs "saved or created" (impossible to calculate), and a lot of people will not question it. It would be nice if Austrian economics became more popular, but it will take an event the size of the Great Depression to change enough minds. I agree with you though. Keynes should have been discredited decades ago.
Source(s): My mind - 1 decade ago
No more than the last administration proved Supply Side Economics wrong by having two recessions under their watch. How many presidents have had a net job loss? Three Hoover, Bush (42), and Bush(43).
Source(s): Econ Minor. Reagan was anti-Keynes. - Anonymous1 decade ago
RONALD REAGAN was the big champion of Keynes economics, which he used as a thinly veiled plot to decrease taxes and increase corporate welfare to benefit the wealthy. This also resulted in the punishing Recession of 1982, and AGAIN in 1989 under GHW Bush.
George Bush is the one that proved Kenyes doesn't work - as the huge market crash occured while he was President.
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- Anonymous1 decade ago
Unemployment is a lagging indicator. The Obama Administration has always said that unemployment will improve slowly.
Factory orders are up.
The Dow is up.
Home sales are up.
Interest rates are down.
The Index of Leading Economic Indicators is up.
Unemployment stayed high during the Depression because both Hoover and Roosevelt listened to the idiots who said that we had to balance the budget.
And speaking of idiots...
- Anonymous1 decade ago
Most of the stimulus is being spent next year. The unemployment is leveling off. The economy is going to grow next quarter.
But you say the stimulus package is a failure despite this. I can see you are the smart one in the Republican party.
- Mr. WolfLv 71 decade ago
Just about every economist has stated that the steps taken worked and many economic indicators also show the steps taken by President Obama worked.
- ?Lv 61 decade ago
The economy is in better shape now than it was a year ago. Unemployment is the last factor that is looked at. The numbers are declining month after month, which is a good sign. Stop being so racist because you have a black President.
- Anonymous1 decade ago
What failure, it has been less than a quarter implemented, and already talks of Great depression pt. 2 have ceased and the economy is steadying.
- Anonymous1 decade ago
Hmmm. I thought 1942 did it. Can't believe it took this long to do it again
