On May 24, 2012, at 2:56 PM, Francis Drouillard wrote: > Obama and the Democrats have proven that massive government spending doesn't > work. That's because spending doesn't increase wealth -- only production > increases wealth
No. Spoken like a true randoid. Only DEMAND increases wealth. There isn't sufficient demand to move the economy, because people are insecure in their jobs and income. Given that the world economy is largely driven by consumer spending, when consumers spend less the economy tanks. You want to reduce the only actual demand there is: government spending. Private industry isn't spending, and it has nothing whatsoever to do with taxes or healthcare or the delicate delicate feefees of our galtian overlords, it's because there is insufficient demand for their goods and services. Keynes greatest insight was that in the absence of private demand, if it is intended government policy to get the economy going again, the government is the spender of last resort. We're seeing this in the economies of Europe. Spain (which had a lower spending of GDP on the public sector than Germany before the Real Estate crash) has committed to drastic cutbacks of government spending. Since private spending is still in the doldrums, this means Spain is in a deep recession now. Unemployment is upwards of 50% for people in their 20's, total unemployment is 24%. Tell me, where is the growth supposed to come from when you have a quarter of your workforce idled? <http://tinyurl.com/ch4d2x6> None of your pet theories (supply-side econonomixc, trickle-down, cutting taxes, etc) have ever produced growth. You can look at the actual numbers; they don't lie. You may not like what they tell you, but they don't lie. -- Bruce Johnson University of Arizona College of Pharmacy Information Technology Group Institutions do not have opinions, merely customs -- You received this message because you are subscribed to the Google Groups "StrataList-OT" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/stratalist-ot?hl=en.
