Saturday, July 16, 2011

Debt Crisis - #3081 - Peter Ferrara: Obama and the Establishment Have Tried Everything But Reaganomics - Forbes

President Barack Obama, Congressional Democrats, and the Washington Establishment have now tried everything to revive America’s moribund economy…except Reaganomics. We have seen over a trillion in Keynesian stimulus spending, record shattering deficits, easy money, bank bailouts, mortgage bailouts, low interest rates, even fake, Keynesian, “tax cuts” (based on tax credits rather than reduced rates). Yet, at no point in the last 70 years, going back to the Great Depression, has the American economy suffered unemployment this high for this long, or such extended stagnation without a rebound or recovery. The American economy does not lie flat on its back for years and years like this, except during the Depression. Even in the 1970s era, the economy persistently rebounded after four worsening recession cycles. Moreover, the historical record in America is the deeper the downturn the stronger the recovery. Based on this history, America should be in the second year of a booming recovery by now. Instead we have yet another failure of Keynesian economics.  Read more........  Article contributed by Steve Peters.

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