Columnist Paul Krugman is the theologian of the progressive movement, providing a patina of academic legitimacy to economic policies with fancy names that simply seize income and resources from some citizens in order to transfer them to others. Krugman published a column on New Years Eve called “Keynes Was Right” wherein he argues – astonishingly – that President Obama’s massive increases in spending and debt failed to bring about the promised job growth and prosperity because…[drum roll]…they weren’t massive enough!
Of all the recession/recovery cycles over the past five decades the Obama spending surge was by far the largest, 303% more than the second largest increase in 2002. Yet the current, post-recession growth in private sector jobs turns out to be the smallest. The second smallest coincided with the second largest spending increase. In stark contradiction with Krugman/Keynesian dogma there was greater job growth in the 1960-62 cycle in the face of spending cuts than in the current cycle with it’s unprecedented increase.
Krugman claims that “those of us who did the math knew right from the beginning” knew that the Obama spending binge was “halfhearted,” and not nearly enough. But he offers no statistical record to support his assertion that the American economy would have grown more rapidly had government spending surged even more.
Krgman is right about one thing:
President Barack Obama has finally gone back to fighting against premature austerity — and he seems to be winning the political battle.
Spending in 2011 went up, not down, in spite of all the fury over debt ceilings and possible shut-downs. There are no plans for spending cuts in 2012 or any future year. The political establishment has made Obama’s towering spending the new “baseline” or the floor upon which, according to the government’s loony budgeting processes, future annual increases will be built every year, forever, or until the world is no longer willing to loan America any money and hyper inflation prevents the Federal Reserve from creating any more money.
Astoundingly Krugman tries to portray himself and other Keynesian believers as the underdogs:
In declaring Keynesian economics vindicated, I am, of course, at odds with conventional wisdom.
This is so absurd it’s comical! The political-media conventional wisdom is, if nothing else, nearly unanimous in the assertion that government spending, especially deficit spending “stimulates” prosperity and job creation. Conventional Wisdom authored the Obama stimulus with it’s promise of thousands of “shovel ready projects” that would sop up all of America’s surplus construction workers, filling their pockets with cash which they would shower upon the rest of us, creating 3-4 million new jobs immediately and driving unemployment below 6% by the end of 2011.
Krugman concludes with a bit of sarcasm:
One of these years we might actually end up taking Keynes’ advice, which is every bit as valid now as it was 75 years ago.
Where, Mr. Krugman is there any data to back up your sarcasm? Please show us some examples of U.S. government borrowing and spending escalation that was even larger than Obama’s 2009-11 tsunami, that brought about full employment and prosperity? We’re waiting.