Friday, August 12, 2011
Is Obama's economic policies working, if so why and if not, why, and what can he do to save the economy?
Keynsian Economics is a good thoery, and that is about it. Keysnsian economics does not take into consideration expectations or uncertainty. Hence, it does not work well in regards to policy. People who cliam to be Keynsians forget that cutting taxes is part of a Keynsian stimulus policy. In contrast, Keynsian policy makers like to tax and spend --which is counterproductive. On top of that, the Obama administratin wants to increase regulations i.e. Public health, cap and trade, regulate wall street, etc. This is a further impediment to economic growth. Moreover, this has all been done under Jimmy Carter with all the same results.
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