Unfortunately, it hasn't worked in much the say way that Keynesian Economic model hasn't worked. From the comments of as blog post by Don Surber:
Krugman isn’t stupid, he’s blinded by his own preconceptions…and therein is the problem. When you refuse to see just what is facing the country objectively, and become a political hack, and lose whatever credibility you may have once had. Mr. Krugman, has become just another mouthpiece for the political left, Keynesian economic model.And,
That model failed to end the Great Depression of the late 1920’s and most of 1930’s. In fact, it’s been proven by a couple of UC economists (who most certainly didn’t intend to do so) that FDR’s policies of 1934-5 killed off the nacent recovery and led tto another 7 years of depression. WW2 ended the great depression…and has lead to the ruinous policies that our government is STILL FOllowing!
The chickens have come home to roost…
Keynesian economic model doesn’t work. It has never worked for any length of time it’s been used. Because you can’t spend money you don’t have for any lenght of time. Eventually, as Margaret Thatcher showed in the 1980’s, eventually you run out of other people’s money.Because of the QE2...we are now entering a period of inflation (not the "government's 'core' model") which doesn't actually reflect reality, but what is really occuring. Gasonline is getting vastly more expensive, rising bby a 25% inflation rate over the past couple of months. Retail food is rising at about 12% monthly...not annually. This impacts the poor and the middle class hardest. This is what killed James Earl Carter's attempt at gaining a 2nd term. If price for basic commodities continues to rise at this rate, Barack Hussein Obama, will be ranked with Jimmy Carter and James Buchanan as one of the worst presidents of US history.
We’ve run out of other people’s money. It’s well past time that Congress, MUST cut ALL programs across the board by 20%…or more. As a moderate/conservative type, even I recognize that the DoD budget must be reduced by roughtly the same amount. However, it’s the massive and growing entitlement programs that will bankrupt our country…within the next 9 years…or sooner.
We have to grab Congress by the balls, and squeeze, hard. They have to understand that Congressionnal business as it’s been practiced in Washington for the psat 70+ years, MUST STOP NOW.
The Tea party movement gave the GOP ahuge majority in the House, and may well do so in the Senate…if they don’t fuck it up. I think they will.. They certainly did this over the recent battle of continueing resolution. Claiming a $38 billion cut…that turns out to be $395 million isn’t just a betreyal of the Tea Party movement that gave them their majority, it’s a repudiation. Every leader of the GOP in Congress must be face a significant challenger in their primaries next year, if only to show that We The People are serious in our resolve to end business as usual…the future of America demands that something must be done now…because if we wait too much longer, then the austerity measures will be truly ruinous.