- He graduated Yale?
- He worked at Merrill Lynch? (got caught committing securities fraud)
- He wrote for Slate?
- He's the CEO of Business Insider?
in my mind has just written the single worst article on the world's current financial situation I've ever come across. Scary actually that there are people out there whom clearly will always believe what they believe.
Keynes was right he claims.
He claims "I'm not an economist". No argument there; lets go further, you lack basic logic. All of the powerful economic countries (mainly Europe and the US) practice Keynesianism for decades - yes decades. Looking at simple facts the US has had a strong 40 years of spending more than they take in. Since GDP = C + I + G + NX with G's inflated spending we pump 'fake' demand into the cyclical GDP. In fact our deficit spending is so bad now we're roughly 12% of the GDP in over-spending. Clearly Henry, and many others do not understand what that means - for us to continue to grow and be as prosperous as we are now we have to borrow more and more. It doesn't end - we'd get to the point where we'll have to borrow as much as our entire countries GDP just to pay for our interest of what we've borrowed - and still it will climb. So all these countries have only been practicing Keynesianism for decades (please do not even pretend to count the 2 Clinton years when they raised taxes while booming, borrowed from Social Security, and still spend huge amounts more than the previous years just to come out even) and now all their monetary policies are failing - and you conclude that Austerians failed us? WTF? Your logic is because we needed Keynes ideas to bail us out? Seriously? How do you know we'd be worse off without the bailouts? You think we're out of the woods now? You think none of the financial problems were caused by pumping in fake demand? Creating a government that employs more and more people?
Next huge flaw in logic:
If pumping money into the system is the solution - why not pump in $900 trillion? You can't claim it only works to a point - because the entire premise behind your conclusion is that pumping in money stimulates everything; Oh, and your 'fix the highways thought' - go read an intelligent man's thoughts on that (Mark Cuban). Yes if the government stops spending money they don't have then things will get worse; of course it will because they've created so much false demand everything will have to cut back - we have to face the truth. The more you 'kick the can' the worse that reality will be - exponentially. Would you rather take a 25% pay cut now - or keep your salary for 5 more years and take a 50% then? How about another 5 and now your pay cut is 100%. It is people like you, like Obama (although I think he knows the sad truth but has chosen to put it off) that are forcing us deeper into the hole. We know what we did wrong, what doesn't work - we have all the proof a half-intelligent person could ever need - yet there are those out there, CEO's mind you - screaming we need more.