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Source link: http://archive.mises.org/11077/bleed-this-patient-more-more-more/

Bleed this patient more, more, more

November 21, 2009 by

NYT: New Consensus Sees Stimulus Package as Worthy Step

Now that unemployment has topped 10 percent, some liberal-leaning economists see confirmation of their warnings that the $787 billion stimulus package President Obama signed into law last February was way too small. The economy needs a second big infusion, they say.

It might be fun to think of similar headlines in history, e.g.: New Consensus in Salem Sees Too Few Witches Burned.

{ 16 comments }

Seattle November 21, 2009 at 9:09 am

I love how the article describes economists who are against the stimulus as “passionate.”

Because, obviously, if you don’t believe what we tell you to believe, then you must be an uneducated idiot blinded by emotions stirred up by watching Fox News.

Bruce Koerber November 21, 2009 at 10:52 am

Darkened Horizon Not The Fictitious ‘Green Shoots.’

When the ‘green shoots’ of stimulus are limited to the luxurious houseplants in the mansions of the well-connected friends of the Federal Reserve then it is very difficult to forget that the Keynesian policies of the economic terrorists in charge of the unConstitutional coup are blackening the American nation as you can see in this graphic presentation (http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html).

The same economic charlatans who fertilized the private gardens of the corrupt overlords now say that more (We’ve heard it before: FEED ME!!!) is needed! Expect the process of the extinguishing of entrepreneurship to intensify as the plague of socialism and fascism blankets America.

The economic quacks and the unConstitutional coup will either be ousted by the masses who are being educated to be lovers of liberty or they will be ousted by the destruction of the dollar and that, predictably more destructive, chaos.

Richie November 21, 2009 at 10:58 am

What fascinates me the most about this piece is not the usual Keynesian fallacies of needing more spending, but the repeated claim that without the “stimulus” the economy would have been much worse. How do they know this? How do they know that the economy would not have improved by now? What non-sense.

Richie November 21, 2009 at 11:04 am

Oh yeah, another headline could be like this:

“Hurricane Andrew wrecked havoc on the state of Florida, but economists warn the damage might not be severe enough to stimulate construction and lift the economy out of recession.”

Bogart November 21, 2009 at 11:15 am

Question: What do you do with witches?
Response: BURN BURN BURN!!!!!

Question: Apart from witches what do you burn?
Response: MORE WITCHES!!!!!!!!!!

Deefburger November 21, 2009 at 12:07 pm

This is like a bunch of people standing around a boat, talking about the new enhancements that they made to the boats design, and the increases in performance that have been realized from these enhancements.

The boat is in dry-dock and has never been on the open water.

But these people are patting each other on the back and handing out blue-ribbons as though there was really something happening that they had something to do with. Meanwhile others are saying there isn’t enough change.

Fictitious quote:

“We added more fuel to the beast and increased the amount of it that can get to the engines. The increase in performance is amazing!”

“But it would be so much faster if the tanks were filled up two or three times as much, you didn’t do enough!”

Kid on the sideline:”Dad? How fast can it go up on blocks like that? My rubber duck has more speed in the bathtub!”

Dad:”It’s complicated son. You see, this boat is the ‘economy’ and it doesn’t work like your duck.”

Kid:”Why not?”

Dad:”Go ask your mom.”

Shay November 21, 2009 at 2:03 pm

Man gets sick with flu, rushes to quack doctor. Doctor prescribes exposure to cold to kill the flu more quickly. Man follows this and his flu seems to be going away after a week, but then he has a relapse. Since the quack doctor’s cure almost worked, he goes back and gets the same advice. This time, he dies. He must not have applies it quickly enough, everyone says.

Mark November 21, 2009 at 2:37 pm

In the interests of historical accuracy, the Salem “witches” were actually hung, not burned.

Thomas November 21, 2009 at 2:47 pm

If every dollar in infrastructure spending really created $1.57 in economic activity then there would be no reason not to spend an infinite amount of money. Of course anyone who knows any basic math knows that it would create an exponentially increasing and therefore inherently unsustainable situation. And don’t worry about whether the infrastructure is actually necessary or not. Even if you build a road in the middle of nowhere, pay 10 times normal for your labor/materials, take 10 years what would normally take 1 year, and generally waste the entire sum of money it wouldn’t matter, just as long as the money was spent on infrastructure. It must be nice to be Keynesian where you don’t have to worry about all those little details.

Ted Amadeus November 21, 2009 at 3:59 pm

All of which is nothing next to the money we don’t have that’s about to be spent on the Pelosi/Reid DEATHcare Implementation gimme.

Russ November 21, 2009 at 5:07 pm

New Consensus of Alcoholics Find Solution to Hangovers: Never Stop Drinking!

Bob Roddis November 21, 2009 at 6:00 pm

It is essential that Austrians understand that Keynesians believe that people who don’t believe in the magical and mystical powers of money dilution and massive debt are ECONOMIC ILLITERATES! They really believe it.

From Yglesias:

[T]he public has absolutely insane ideas about balancing the budget. In particular, 67 percent of voters claim to believe that “the government should balance the budget even when the country is in a recession and is at war.”

From Steve Benen in the Washington Monthly:

It’s probably worth noting that the majority is hopelessly wrong. I’m not even sure if the majority fully understands what the deficit is, why it’s large, what would be needed to make it smaller, and how it fits into the larger economic landscape. For many, it seems the “deficit” is just an amorphous concept that loosely means “bad economy.”

Which is why it’s important that policymakers not base policy decisions on illiteracy.

****
Once in a while, policymakers have to be responsible enough to ignore polls and do the right thing. If these results are accurate, people care more about the deficit than the economy. But that’s crazy.

Darryl W. Perry November 22, 2009 at 1:51 am

Hurricane’s Katrina & Rita did not damage the Gulf Coast severe enough, thus causing the current recession.

matt November 22, 2009 at 1:53 am

There’s an Onion book called “Our Dumb Century” with supposed front pages of the Onion from throughout the 20th century. The one from the day before the stock market crash of 1929 say in big bold type “STOCK MARKET INVINCIBLE” and describes how all the problems of wealth creation and scarcity had been solved forever.
The headline for the next week is “Brother asked if he can spare dime.”

matt November 22, 2009 at 1:59 am
Seattle November 22, 2009 at 1:52 pm

Sadly, it’ll probably only get worse.

It has recently come to my attention that the economics courses at the local public schools no longer mention anything about supply and demand, competition, etc. Everything that’s taught there now is “Spending = Good, not Spending = Bad. Nothing else matters.”

While this is only at public schools in the local area as far as I know (and I fear it extends far beyond), it’s likely to be the only economic education our children will ever receive. Sad, sad, sad…

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