January 15, 2013
Rick Santelli Nails the Keynesians: "The answer is always more money"Topics:
CNBC's Rick Santelli ripped the Keynesian serial spendaholics today on "The Santelli Exchange."
"The answer is always more money... in ten years when we look back, is the weight of all this debt going to take care of all of these impulsive upticks?"
Keynesian economics is the false vision of human action which says the way to promote economic recovery and renewed growth is through increased government spending, deficits and debt. If that sounds nuts, that's because it is.More here.
The idea is that the increased government spending and deficits will increase demand in the economy for more production, and that producers will increase supply to meet that demand, hiring more workers and reducing unemployment in the process. Keynesian economics arose in the 1930s in response to the Depression. It never worked then, as the recession of 1929 extended into the decade long Great Depression. And it never worked anywhere it's been tried since then, in the U.S. or abroad.
By the 1970s, Keynesian policies had produced double digit unemployment, double digit inflation, and double digit interest rates, all at the same time, along with four successive worsening recessions from 1969 to 1982. Keynesian monetary policy involves running up the money supply to increase demand, with artificially lowered interest rates promoting more spending. That is where the inflation came from.
Posted by Hyscience at January 15, 2013 6:28 PM
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