« Keynesian Spending has Zilch Effect on Recovery (Op-Ed From Larry Kudlow) »

I've written extensively on this issue.  Find a couple of editorials here, and here.

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Stubbornness is a bad trait in politics and policy, one that will be punished at the polls this November.

The Obama administration continues to argue that its massive federal-spending campaign is essential to economic recovery.

Yet the latest GDP report from the U.S. Department of Commerce shows that the 3.2 percent first-quarter economic growth rate got no help from government spending.

In fact, combined federal, state, and local spending actually fell 1.8 percent. What’s more, over the last three quarters of a mild V-shaped recovery, with an average quarterly rebound of 3.7 percent, government spending actually exerted a small net drag (-0.03%) on growth.

I guess it’s time to ask our Keynesian friends in and out of government what exactly happened to those vaunted multiplier effects they so loudly proclaimed. So far, there is zilch effect.

Turns out that all those entitlement transfers of income borrowed and taxed from Peter to pay Paul have made no direct contribution to the nation’s production of goods and services. This, however, comes after $318 billion of spending through April 23, according to the web site recovery.org.

Pretty expensive fiscal habit, wouldn’t you say? But for what?

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Comments

[Gail Irvin]

All I can say is that if people who faulted President GW Bush, they have elected one of the worse Presidents & a Democratic Congress in History in the United States. When will our people finally wake up, that these people have been destroyers of our nation. The economy has plummeted with their assistance! Now we have a horrible Healthcare Bill, where people will not receive the good healthcare we all previously received. Now, we have these fools who are pushing Cap & Trade, which will be another destroyer of our economy plus put holes in all American Taxpaying Citizens pockets! Enough is enough! We need to get rid of these arrogant liberal fools.......at the voting booths! Take back America!

[S. Gompers]

It is a little bigger than that Gail, and both parties are responsible. I do agree with your ending line though and say throw all the bums out, leave no incumbent standing.

The constant switching back and forth between two parties that have both protected the ponzi scheme of 1913 as a religion, the destruction of the middle class, the transfer of the "wealth" of America to foreigners, and Agenda 21 must end to save America.

The transfer of power back and forth in the White House and Congress is always based on the piss poor performance of the current party in power by the Neophytes. It is the age old game of bait and switch...

Meanwhile the party rolls on in the quest to suck the very life force out of our nation no matter who is elected.

[DailyBail]

perfectly stated gomp...