The rise of the anti-Keynesians (house of representatives, Clinton, Obama, dollars)

[Dragneel]

WHEN Republicans proposed slashing billions of dollars from federal spending this year, Democrats circulated predictions by economists that jobs and growth would be hit. John Boehner, the Republican speaker in the House of Representatives, countered with an economic expert of his own: John Taylor of Stanford University. “Nothing could be more contrary to basic economics, experience and facts,” Mr Taylor asserted on his blog, which Mr Boehner cited. By cutting government spending, he said, the Republicans would “crowd in” private investment and create jobs.

Republican economics: The rise of the anti-Keynesians | The Economist

A new era my friends

[geofra]

From the article...

Republicans may have found intellectual satisfaction in their opposition to fiscal and monetary stimulus. Whether voters will thank them is another matter. The danger is that, when interest rates are stuck near zero, austerity is more likely to hurt growth than help.

Let's hope practicality wins out over dogmatism.

[txgolfer130]

Originally Posted by Dragneel

WHEN Republicans proposed slashing billions of dollars from federal spending this year, Democrats circulated predictions by economists that jobs and growth would be hit. John Boehner, the Republican speaker in the House of Representatives, countered with an economic expert of his own: John Taylor of Stanford University. “Nothing could be more contrary to basic economics, experience and facts,” Mr Taylor asserted on his blog, which Mr Boehner cited. By cutting government spending, he said, the Republicans would “crowd in” private investment and create jobs.

Republican economics: The rise of the anti-Keynesians | The Economist

A new era my friends

A new era? You mean a return to the same old destructive and voodoo economics that have been in place for the past 30 years.

Mr. Taylor's "Taylor Rule" is what you and the Republican's want? You do realize that Mr. Taylor says that the Bush Administration's pressure to Greenspan to keep the rates low, are 1/2 of the problem to our current fiscal deficit do you not? Rational expectations and 'real-world' economic applications are two things not in evidence w/ Mr. Taylor, Mr. Fisher or Mr. Phillips' theories. While they are extremely informative and demonstrative on "expectations", they fall short when aggregate behavior is applied to their theories. Supply side manipulations and aggregations have shown to fail time and time again.

Mr. Taylor as well as Mr. Boehner know and have shown this as well.

[Dragneel]

oh come on...

[Frank DeForrest]

Bring on the Austrians

[oldtimer2]

Twenty + years of trickle down and the middle class gets the shaft.

Why not continue it?

It helps the rich people we rely on.

Without them we may lose our jobs, our homes, and our health benefits.

Look at all them new jobs, factories, and better benefits we now all have because of their sound economic policies.

More of the same works for them wealthy people, so it ought to be good enough for you.

Everybody knows it.

Them Dems just do not want to admit that the Republicans have made everything better here in the U.S.A.

Got Work?

[Bulldogdad]

Originally Posted by Frank DeForrest

Bring on the Austrians

Only if they bring their beer and their beer maidens.

[Swingblade]

Originally Posted by Frank DeForrest

Bring on the Austrians

The only {R}s that I know of that embrace Austrian economics are the Paul's. Keynesian economics is one of the area that has wide bi partisan support and this article is a insult to the Austrian school.
Look at the definition :

Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle.

Like it has been said here before both parties are just wings of the same bird.

[Earlyretired]

We need another Andrew Jackson...

[Toyman at Jewel Lake]

The last 10 years has seen unprecidented government spending (and debt), the hallmark of Kenisan economic theory. If anything disproves this theory, the economic state under Bush II and III (Obama) should be it! Under the last years of the Clinton administration, fiscally responsible Republicans had sway in both the house and senate. They reigned in spending and the economy boomed. QED-Kensianism trashed.