Tuesday, January 15, 2008

Keynes in Not the Solution for America's Economy

Fire of Liberty

After watching the various Sunday morning news shows and hearing the various "economic stimulus" plans being pushed forward by Hillary and Obama, I felt like I was transported back to the 1930's with all of this hawking of Keynesian economics. If you remember anything from history then you remember that FDR's "economic brain trust" believed that the best way to keep the economy churning was for the federal government to begin a massive spending programs as well as massive tax increases in an effort to "prime the pump".

Now while a lot of liberals of today have dusted off the New Dealers economic playbook in an effort to jolt the economy, they failed to remember history or they'd remember that Ronald Reagan(with the help of the economic theories of Milton Friedman) destroyed such faulty economics by noting that the supply-side of the economic ledger was far more important in spurning the economy. So instead of coming out with a big government spending program, the nation needs a further liberalization of the economy in which the private sources of economic growth is freed from the burdens of taxes and regulation and allowed to spurn growth. Even more, the problems that are posed to our economy are best solved by letting the free market do its own work much like we saw with Bank of America buy Country Wide this past Monday. No matter how we look at it, the best solution is for the government and politicians offering Keynesian solutions to stay out of areas that are not pertinent to the job duties. If you want to learn more on the the wacky but harmful economic "stimulus" package being put forward by the Democrats then I suggest you check out the following column by Rich Lowry, editor of National Review.

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