Liberal Democracy

Liberal Democracy
The Free State

Tuesday, January 10, 2012

Dan Mitchell: 'Big Government Is Not Stimulus: Why John M. Keynes Was Wrong'

Source:CF&P- President Franklin D. Roosevelt (Democrat, New York) is one of the targets of Dan Mitchell's piece here.

"The CF&P Foundation has released a condensed version of our successful mini-documentary explaining why so-called stimulus schemes do not work. Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance." 


If you are literally arguing that government spending can't do anything to boost and stimulate the economy, then you are admitting that President Ronald Reagan's Economic Recovery plan of 1981, which included steep, across the board tax cuts and huge increases in government spending, mostly relating to the military, with every dollar for these programs being borrowed didn't work. 

You are also admitting that President George W. Bush's economic stimulus plans of 2001 and 2003, which again included steep, across the board tax cuts and large additional increases in government spending, didn't work either. I'm not sure if Dan Mitchell has even thought about it, even though he's a professional economist.

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