Fear the Boom & Bust

Here's a humerous video about the differing economic principles of F A Hayek and J M Keynes.

In Fear the Boom and Bust, John Maynard Keynes and F. A. Hayek, two of the great economists of the 20th century, come back to life to attend an economics conference on the economic crisis. Before the conference begins, and at the insistence of Lord Keynes, they go out for a night on the town and sing about why there’s a “boom and bust” cycle in modern economies and good reason to fear it. Get the full lyrics, story and free download of the song in high quality MP3 and AAC files at: http://econstories.tv

as well as this one, via 1389 Blog

Obama Flip-Flops Again

In the summer of 2009, Mr. Obama clearly states that you don't raise taxex in economic down-turn. 



In 2011, with his new lazer-like focus on jobs, he's proposing $400 billion dollars in new taxes to off-set his $447 billion dollars spending spree which he wants to bolster SEIU membership by giving huge sums to state and local governments, and maybe do a little construction on the side...Reuters is reporting that,

President Barack Obama is proposing a series of tax increases, mainly on the wealthy, to help cover the cost of a $447 billion economic stimulus proposal, budget chief Jack Lew said on Monday.  Lew said Obama's plan would raise $400 billion over 10 years by placing new limits on itemized deductions for individuals making more than $200,000 a year and families earning more than $250,000.  The rest of the $467 billion in savings would come from raising a smattering of other taxes, including those on corporate jet owners and the oil and gas industry. [emphasis is mine, Ed.]

The definition of insanity is continuing to do an action while expecting the get a different reaction.  The "Stimulus Package" was basically configured much the say way as this "jobs plan" yet was a dismal failure, except to SEIU.  Yet, here Mr. Obama is proposing to do pretty much exactly the same thing.  Keynesian economics has failed in every instance it's been used to "jump start" an economy...why does he think it'll be different this time around?

HT:  GatewayPundit

It's the Economy Stupid: Chapter 497 - The Balanced Budget Edition

Mr. Obama says he's going to be engaging in a lazer-like focus on jobs...but hasn't he said that before?  I mean all through 2009 he said he was going to focus on jobs...and where are those jobs?  We've lost more than 2 million since then...just what has to happen for this man to understand that we're run out of other peopel's money and we absolutely must cut spending below the level of what taxes the government is taking in?

After all, what happens to the average person when their credit cards are maxed out, and their checks are bouncing left and right?  Congress must pass a real balanced budget amendment.  We're well past the time that we can afford as a nation, to spend money we dont' have. 

30% of California's budget comes from the Federal fisc.  New York is in a similar situation, as are all the other "blue" states...The EPA is literally passing regulations aimed at hampering any economic up swing.  Those regulations will in the end, force at least one state to "brown out" during heat waves, by forcing the closures of coal burning power plants. 

The socialist welfare state has failed.  Every single country in Europe that has that as their economic model has begun to swing away from it.  Keynesian economics has failed every single time it's been tried and it's failed this time as well. 

At this point the only way to save our economy, government and way of life is to return to the spending level of 2006 (prior to the 5 trillion dollar debt racked up by Nancy Pelosi, Harry Reid and Barack Obama, with the connivance of G. W. Bush) and cut that by 30%!  But our political class, hasn't either the courage or character to do it.  They will only push half measures, that do more harm than good.

The recent "debt ceiling" deal...doesn't cut current spending at all.  It will only curb "future growth" of sspending...no kidding.  It's not a deficit cutting measure, it will only slightly curb  how large the size of government grows.  Just another paper that guarantees "peace in our time."  But it won't guaranttee that Congress won't blow billions on pet projects.

Only by balancing the budget, and implementing a severe and serious austerity budget can the economy be restarted.  A vast reduction in the regulatory over-reach of government will encourage buisnesses to start hiring again.  Small business is the machine that grows our economy, and as a former small businessman, there's no way I'd hire new employees and expand my business right now.

Congress must quit playing politics and start acting like statesmen who have a vision...before it's too late, though I genuinely fear that we've crossed that threashold.

Ann Coulter Smacks Down Eliot Spitzer

Earlier today, Ann Coulter verbally smacked down disgraced former governor, Elliot Spitzer on CNN.  I'd love to have the video, but can't figure out how to post it from CNN.  Here's a partial transcript: 

SPITZER: Have you ever made, have you been in business?
ROBERTS: Not myself.
SPITZER: You don’t understand how these capital allocation decisions are made. You really don’t.
ROBERTS: Okay, sorry, how many of President Obama’s actual, of which he now only has one left, Mr. Geithner from his original team, they all have left, how many of them actually did businesses themselves? Very few of them. Most of them were academics. So don’t just attack people simply because they think differently than you do.
COULTER: What business have you ran? You’re a governor.
SPITZER: Ann.
COULTER: You’ve been in politics your whole life. You’re haranguing us. “If you were a businessman.” This is the strangest conversation I’ve ever seen.
SPITZER: No, Ann, because you’re making statements that are so completely counter-factual...
ROBERTS: I'm a historian. I didn't live in ancient Rome but I can still write about it.
SPITZER: You're statements about the economy are simply counter-factual, contrary to every piece of evidence…
COULTER: You’re right, you’re right, the economy is just booming right now. That Keynesian economics Obama gave us has been a delight.

Go watch the video!

Keynes vs Hayek

If history is any proof, Hayek won.