Challenging the basic theory of govt. stimulus.

[AztecWilliam]

Here is an interesting, and I think persuasive, view of economic growth that indicts the Left's favorite view of how economies can be boosted; namely, the Keynesian model.

www.american.com/archive/2010/august/when-labor-is-capital-the-limits-of-keynesian-policy

AzWm

[aztecwin]

Interesting! I wonder if Keynes would have ever been right if that initial spurt of spending were to result in something sustainable. It seems that the spending is not the entire problem with the Keynes way, but that there is no way to accelerate the velocity of money to stimulate the economy on a lasting basis. There are always those people or organizations that screw up the works by saving rather than keep things moving. Who would ever think that saving would be a problem?

[The Great Aztec Joe]

As I keep on reminding people Economics is theory. It is not a science. The theory works a lot of the times but not always.