quote:

Originally posted by BBMW:
I don't know about that. The Fed threw all it's Keynesian tricks at the 2008 recession. It never got to be a full on depression, and GDP recovered much more quickly than in the great depression.

Worst economic recovery since WWII. No one will ever know, but there is a school of economic thought that the actions taken by Obama made the recession much worse than it would have been. Obviously, Keynesians would disagree.

Report: Worst economic recovery since 1930s, salaries fall $17,000 short

The GDP never hit 3% under Obama. He is the first President in history to never hit 3% GDP in his 8 year term.

quote:

Originally posted by BBMW:
I don't know about that. The Fed threw all it's Keynesian tricks at the 2008 recession. It never got to be a full on depression, and GDP recovered much more quickly than in the great depression.

quote:

Originally posted by TigerDore:
"Shovel Ready" was more Keynesianism. It doesn't work.

quote:

Originally posted by BBMW:
The Fed did it in other ways (dumping cash into the economy, buying all sorts of debt/bonds at inflated prices.) Sound different buy was the same thing. They also cut the SS tax. And does the term "shovel ready project" mean anything to you?

quote:

Originally posted by BamaJeepster:

quote:

Originally posted by BBMW:
Even if you talk to Kenesian economists, they don't call for continuous, never ending deficit based "pump priming". It's supposed to be a temporary thing to boost the economy when it's stalling out. In that way the spending on WWII was a good example of that. It got the economy going, and, combined with the pent up demand both domestically and around the world, set us up for a good 25 years of running prosperity (where the government could then run a surplus.)

I get that that is the theory, so why not do that in 2007? Just announce that the government is going to hire 5,000,000 people who have jobs and pay them to go camping off the grid in the Rockies while simultaneously buying the full output of the US car manufacturers plus significant buying of other goods to supply the millions camping in the Rockies? If that is what pulled us out of the Depression, then just do it whenever the economy stalls, right?

quote:

Originally posted by BamaJeepster:

quote:

Originally posted by BBMW:
And does the term "shovel ready project" mean anything to you?

Yes, that is exactly my opinion of Keynesian economics!!

This is a good article explains more in depth than I can get today:
WORLD WAR II AND THE TRIUMPH OF KEYNESIANISM

Also, can never pass up an opportunity to share these videos with anyone who may not have seen them:


[FLASH_VIDEO]<iframe frameborder="0" height="315" src="https://www.youtube.com/embed/GTQnarzmTOc" width="420"></iframe>[/FLASH_VIDEO]

Those are great.



I'm reminded of Friedman telling a story of some bureaucrat telling him about how they were building roads with workers and shovels instead of bulldozers because it created more jobs.

Friedman replied, "Why not use spoons?"

If FDR had lived and served out his term and especially if he had won another election we would have slid right back into a recession. His death was one of the contributing factors to the recovery.

Rather grossly over simplistic don't you think?

quote:

Originally posted by BBMW:
I don't know about that. The Fed threw all it's Keynesian tricks at the 2008 recession. It never got to be a full on depression, and GDP recovered much more quickly than in the great depression.

In summarizing a major economic insult and the multiple year reaction by a central bank, in one sentance, yes. But as much as it can be summarized in one sentance, essentially correct

quote:

Originally posted by SgtGold:
Rather grossly over simplistic don't you think?

quote:

Originally posted by BBMW:
I don't know about that. The Fed threw all it's Keynesian tricks at the 2008 recession. It never got to be a full on depression, and GDP recovered much more quickly than in the great depression.

I studied the Great Depression. 2008 was no Great Depression.

Keynesianism has never worked. If you study the year-by-year GDP growth of the 1930s, you will see that economy began to recover on its own until FDR, or Hoover, threw another wrench into it with a tax increase or other federal spending debacle. Keynesianism didn't work in the 1970s when Nixon tried it.

If Obama had done nothing in 2009-2010, the economy would have recovered on its own. Even with the housing bubble collapse, the economy still had strong underpinnings, especially related to the rest of the world.

Keynesianism is Marxism attempting to disguise itself as legitimate economic theory. It was thoroughly discredited by the time Nixon adopted it and belongs on the ash heap of history.

quote:

Originally posted by BBMW:
In summarizing a major economic insult and the multiple year reaction by a central bank, in one sentance, yes. But as much as it can be summarized in one sentance, essentially correct

quote:

Originally posted by SgtGold:
Rather grossly over simplistic don't you think?

quote:

Originally posted by BBMW:
I don't know about that. The Fed threw all it's Keynesian tricks at the 2008 recession. It never got to be a full on depression, and GDP recovered much more quickly than in the great depression.