Wednesday, August 24, 2011

Morning Examiner: Quake exposes Keynesian fraud

Morning Examiner: Quake exposes Keynesian fraud:

But what happens when the aliens don’t attack? Wouldn’t all that spending on anti-alien rays be wasted? Yes. But the Church of Keynsianism doesn’t care.

As long as government policy is driving up spending, it doesn’t matter what the government spends the money on or what else gets destroyed in the process.

This is the same thinking that drove the Obama Administration’s Cash for Clunkers program. Over 500,000 perfectly operational cars were destroyed in an effort to create more spending in the auto industry. But the program proved to be a miserable failure.

Studies have since shown that the the car-destroying program did not create any additional spending. It only shifted when that spending took place. But while Cash for Clunkers created no economic growth, it did make many low-income households worse off. With hundreds of thousands of used cars now off the market, used car prices shot up.

Now it is harder for millions of Americans to get where they need to go................................


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