Thursday, March 15, 2012

Why Obamanomics/Krugmanomics has failed us

"High, persistent unemployment and a sluggish economy underscore what all but the most-dedicated supporters of Barack Obama know to be true: The president's 2009 stimulus program was a massively expensive bust."

"The ground rules for stimulus dollars, as laid out by Obama’s top economic adviser at the time, Larry Summers, were based on the insights of legendary 20th-century economist John Maynard Keynes. The funds were to be 'targeted' at resources idled by the recession, and the interventions were to be “temporary” and 'timely,' injected quickly into the economy.

None of that turned out to be true. 'Even if you were to believe that government spending can trigger economic growth,' says Reason columnist Veronique de Rugy, a senior research fellow at George Mason University’s Mercatus Center,'the money is never spent in a way that’s consistent with the conditions laid out by the Keynesians for it to be efficient.' "

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