‘I.O.U.S.A’ Forever After

Barack Obama,Debt,Economy,Federal Reserve Bank,Political Economy

            
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I am unable to locate the Bloomberg TV segment in which Robert Auerbach, Professor of Public Affairs at the Lyndon Baines Johnson School of Public Affairs at The University of Texas at Austin, disputed the fiscal multiplier effect with reference to research he had undertaken with Milton Friedman. Crumbs, for sure …

Milton Friedman was no Austrian economist. Neither is Auerbach—but at least he has admitted that after he “transferred from the teachings of Abba Lerner [some frightful Neo-Keynesian] to the teachings of Milton Friedman at the University of Chicago,” he “became convinced that Abba had made a terrible mistake. ‘Heavy reliance’ on running the printing press to finance government spending is not immune to serious consequences. There are substantial immediate effects as well as expectations of inflation and higher interest rates that may well appear over time.”

[SNIP]

The state of political economy in the US being what it is, I can safely copy and paste from past articles a response to current, repeat-offender policies. The latest crazed impetus from Zero and his advisers is a “new” “jobs agenda.” “‘I.O.U.S.A'” was written in 2008 on the occasion of BHO’s first fake money infusion:

“Fresh off the printing press, the trillions in new spending Obama is planning will only make matters worse. Understand, government can’t create wealth; it only consumes it, or moves it about. Not even Magic Man Obama can make sustainable jobs materialize by borrowing and counterfeiting. Only the private sector can create sustainable jobs—-sustainable because driven by consumer preferences, as opposed to bureaucratic whim. The more taxing, printing, and borrowing the government does, in the vain name of job creation, the less capital will the private sector have with which to create long-lasting employment.”

6 thoughts on “‘I.O.U.S.A’ Forever After”

  1. james huggins

    I’m reminded of a dog with a dead coon. The dog continues to growl and bite but the coon is still dead. All these academic giants in the universities and government just keep growling and biting but the coon won’t come to life. To a simple thinking, I think Ilana says simple minded, person such as myself it seems easy. Get government out of business and off the back of business’s back. Cut taxes and onerous regulatins on both businesses and the individual. Then stand back out of the way. There are plenty of people out there with the ability to start and run companies, make a profit and thus hire people that the system perks along and it works. What we need is a few more good used car salesmen and fewer PHDs.

  2. My RON-PAUL i

    Things were at least in decent shape while Slick Willie was NOT having sex with that woman Miss Lewinsky and then went sour under Dubya with a big mess in 2008 followed by Obama’s further “stimulus”. SEE THE CHARTS at:

    http://www.heritage.org/research/reports/2010/06/federal-spending-by-the-numbers-2010

    We had a 50% of per household spending increase from the good old days of Clinton (year 2000) to the present.

    By the way, the 1990’s had more job creation when the per capita spending was lower than we have had since the big jump in spending since 2007. The charts are quite telling.

  4. Dennis

    I believe that POTUS and his crew KNOW EXACTLY what all the Fed’s printing is about…THE ECONOMIC ENSLAVEMENT of the U.S. and its citizens via SOCIALIST programs.

    Please note that for every $5 taken from the taxpayer to fund a government program, only $1 gets to the person who was to benefit from the program. The government bureaucracy consumes the other $4. The QEs, 1 & 2, are the hidden taxation of inflation. When #3 is released, it’ll be the signal for me to sell stocks, further tighten the budget-belt, pack-giveaway-trash all items just taking-up space, bank more readily available cash, stock-up on non-perishables, and make sure the car is in good running condition.

    Fiat currency, a central bank, and a printing press – as Ilana has noted – cannot create wealth.

    GOOD LUCK EVERYONE.

  6. joel

    simple elegance. Why the elite in government and education so incapable of common sense when it comes to tax payers money.

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