Saturday, August 15, 2009

New Economic Data Shows that Right Wing Economic Theory Is Simply Wrong.

Actually what it should say is:
New Economic Data Shows that Left Wing Economic Theory is Simply Made up Shit.

New Economic Data Shows that Right Wing Economic Theory Is Simply Wrong.
First, the most recent economic numbers on changes in Gross Domestic Product (GDP) and employment made it increasingly clear that -- as The New York Times reported last Saturday -- the Obama economic stimulus and the massive government intervention in the financial markets were the critical medicine needed to prevent complete economic collapse.

It is now clear that, left to their own devices, there can be no doubt that private financial markets would have pulled the entire economy into another Great Depression.
The obvious question is to what proof is there that we would have had "complete economic collapse"? And that private financial markets would have created the next Great Depression? Like I stated on Thom's, we had a monetary stimulus going on for at least 18 months and a lot of support of banks. It was the Dems and Bush that passed the TARP packages anyway. Will the writer give that credit to Bush? Not likely-he is writing for Huff Post as a matter of fact.
Even as the right continues to rail against the Obama stimulus package, there is now near-universal consensus that the $700-billion-plus stimulus bill is largely responsible for beefing up the GDP in the last quarter. Studies by the private research firms IHS Global Insight and concluded that it is already responsible for saving 500,000 jobs.

Everyday there is fresh evidence that government spending to stimulate demand was critically necessary to pull the country out of the economic tail spin caused by the reckless risk-taking of essentially unregulated private financial markets. Contrary to right wing theory, private consumer demand and new business investment are not leading the way out of the Great Recession -- in reality, government demand was an absolute necessity.

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