links for 2011-04-21

  • As the debt ceiling battle heats up and an economic Judgment Day looms, let me make a bold claim: Reaganomics always works, Keynesianomics always fails… and that is based on the facts of history. In "The New Reagan Revolution," the six economic crises of the 20th and 21st centuries are examined. Three times, Reaganomics produced a long-term economic boom; three times, Keynesian "solutions" made a bad situation worse. Keynesianomics, of course, refers to the economic theories of John Maynard Keynes (1883-1946), who taught that government can boost the economy by injecting money through deficit spending, and restrain inflation by raising taxes. This theory has never worked in practice. Keynesianomics (now known as Obamanomics) fails because every dollar the government pumps into the economy must be taken out of the economy through borrowing or taxation. It produces no net gain and creates no wealth.

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