Dan Mitchell’s educational video on stimulus spending, and why a second stimulus would be disastrous.
Posts Tagged ‘spending’
Roosevelt’s Recession of 1937
Roosevelt’s Recession of 1937, which saw the unraveling of supposed economic growth in the prior years, is oftentimes used as an historical example of what occurs when government decreases spending levels or the central bank fails to continue credit expansion. The use of this event to exemplify these things is disingenuous. More accurate lessons can be drawn, which show that only the market can fix itself.
Dan Mitchell: Deficits are Bad, but the Real Problem is Spending
Dan Mitchell’s new educational video on public deficit and government spending.
The Dangerous “Lessons” of 1937
The recession of 1937 provides a perfect case study to offer a vision of the future based on our current fiscal and monetary policies. It turns out that high government spending and intervention, mated with an inflationary monetary policy, caused the severe downturn of 1937. We are headed down that same road.
Don’t Be Fooled by GDP
Third-quarter data for 2009 is misleading, because most of the growth in GDP is only temporary and will cost us the same, or more, in the near future. Economic prognostics should not be based on GDP data, but on sound economic theory.
On Unemployment and Industrial Restructuring
Krugman, once again, fails to take into all the factors in his mental calculations. This time he fails to make an objective critique of Schumpeter’s and the neo-classical theory on unemployment and fiscal spending.
How Franklin Roosevelt Damaged America
Burton Folsom Jr. provides a telling history of Franklin D. Roosevelt’s administration during the Great Depression, returning a sense of accuracy to the story. The president’s New Deal concluded in continued plight and poverty for the average American, while foreign countries were already pulling out of their own economic quagmires. Despite these failures, today’s leaders promise the same.
Neither Keynes nor Friedman
The Federal Reserve did try to bailout banks during the Great Depression, Hoover did outspend every prior president in an attempt to stimulate the economy and no recession is caused by a drop in aggregate demand. These are Keynesian myths.
Interesting Graphs on Fiscal Spending and Economic Growth
Here are a collection of graphs showing the relationship between fiscal spending and economic growth. They are from different articles I have read on the internet and from a presentation given by Dan Mitchell, given during Cato University 2009. Although I won’t give a more specific argument against fiscal spending in this post, I am open to comments about it and am willing to reply.
European Wealth
Comparisons between Europe and the United States are difficult to make, because different European countries have different standards of livings, different purchasing powers, et cetera. These comparisons are nearly useless.