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Source link: http://archive.mises.org/17641/truth-telling-headlines/

Truth telling headlines

July 8, 2011 by

It is slowly dawning on the press that there is no recovery. The whole thing has been a long exercise in wishful thinking. Job Growth Falters Badly.

{ 28 comments }

jl July 8, 2011 at 9:18 am

Yesterday’s ADP jobs report was slightly better than expected, and the market was ecstatic. Today another report is worse than expected and the market is dejected.

Carson July 8, 2011 at 9:54 am

… the MSM will NEVER awaken to economic truths. Watch tonight’s NBC/CBS/ABC news programs to see how they spin today’s bad employment numbers. There will be some hand-wringing… but ZERO understanding that Federal “stimulus” policies were/are foolish and ineffective — the ‘recovery’ will be portrayed as merely ‘delayed’ by obstinate Tea-Party Republicans … who delay raising the Debt-Ceiling– thus, sidetracking Obama’s noble Keynesian cure to our economic mess.

Giovanni P July 8, 2011 at 1:01 pm

It seems easy to understand that now, but, man, it’s hard. I’ve been a “classical liberal” (in conviction) since I was young, but when I started studying economics at the university and hearding about stimulus and “making the economy move” stuff I almost fell in the shadows of keynesianism. It really makes sense superficially.

ward churchill July 8, 2011 at 2:06 pm

Read some William Buckley – he asserted that liberal policies always sound good, but don’t work – even 40 to 50 years ago.

Walt D. July 8, 2011 at 2:46 pm

A famous quote from your namesake:
If you are under 30 and are not a socialist, you have no heart.
If you are over 30 and are still a socialist, you have no brain.

El Tonno July 8, 2011 at 3:37 pm

Wasn’t that Clemenceau who said that?

GSL July 8, 2011 at 6:53 pm

I thought it was Mark Twain. :)

Walt D. July 8, 2011 at 12:28 pm

There is something circular in the Obama/Pelosi reasoning. Latest howler – implementing Obamacare will instantly create 400,000 jobs. These people will all pay taxes and Social Security. Federal tax receipts will instantly go up – the budget deficit will be narrowed. these people will spend their salaries and the economy will grow – more tax receipts -the budget deficit will be narrowed further.
The big problem – where does the money come from to pay these people. It has to be borrowed.
This would be fine if borrowing money and spending it produced economic growth. However, the problem is that the economic growth created by borrowing and spending does not have to be in US – it could occur in China or S. Korea.
This is why the US is doomed. The current budget deficit, if you include off balance sheet items such as loans to States to pay unemployment is close to $2 trillion. Federal revenue stays stubbornly close to 20% of GDP regardless of tax policy. If the Republican’s cave on raising the debt ceiling, even to cover things through the next election, it is very likely that Obama will be re-elected and they will lose control of the House. The economy will not grow unless there is a radical change in policy. Therefore we can expect the debt to be at least $25 trillion by 2016. The interest on this debt at 3% is $750 billion. At 5% $1.25 trillion. This would be more than half of current Federal receipts.
PS. I’m assuming that the $4 trillion in cuts will not materialize.

Horst Muhlmann July 8, 2011 at 1:35 pm

If the Republican’s cave on raising the debt ceiling, even to cover things through the next election, it is very likely that Obama will be re-elected and they will lose control of the House.

You misspelled “when.”

Walt D. July 8, 2011 at 2:52 pm

Wynn’s Casino is now accepting bets on other thingd besides sports.
I wonder what odds they would offer on:
“Republicans vote to increase the debt ceiling and government spending increases in 2012″.

GSL July 8, 2011 at 6:53 pm

1:1?

HL July 8, 2011 at 1:00 pm

I can’t wait for my eldest to start reading Gibbons. “Dad, I kind of notice some parallels…”

John Selig July 8, 2011 at 1:55 pm

I’m curious to know if there are any countries that follow Austrian Economics, or at least rely primarily on Austrian Economics. I wasn’t sure where to post this question, so I just posted it here. Thank you.

HL July 8, 2011 at 2:08 pm

Maybe Estonia?

augusto July 8, 2011 at 3:06 pm

Wasn’t it an Estonian president who claimed the only economics book he ever read before entering politics “Free to choose”, by Milton Friedman?

Alexandra A.K. July 8, 2011 at 10:30 pm

They tried it for first years of their independence but then they got under iron wheels of EU and all hopes were buried. Another Estonian PM said “we just moved from one Soviet Union to another.”

Bruce Koerber July 8, 2011 at 3:17 pm

So it appears obvious that new entities need to come into existence as we emerge from the cocoon of nationalism.

GSL July 8, 2011 at 6:54 pm

This guy seems to have lots of good thoughts on the subject.

El Tonno July 9, 2011 at 5:42 am

“Every employer making payment of wages shall deduct and withhold upon such wages any amounts so elected, and shall pay such amounts over to the Secretary of the Treasury…”

That’s how it works in Europe, right?

You can file a tax form at the end of the year to get some _reimbursement_

vcif July 10, 2011 at 9:04 am

There will never be a “country” that follows Austrian Economics for two reasons.

1)AE is an analysis of Human Action and has nothing to say about what should be done.

2)What should be done by a “country” is absolutely nothing, since every interference in the market results in a decrease in the standard of living, Every “country”, by definition, passes laws. These laws, by definition, interfere in the market. Therefore, the existence of “country”, by definition, means interference in the market and a lower standard of living. The very idea of a “country” is the diametric opposite of doing nothing.

John Selig July 22, 2011 at 3:39 pm

“Imagine no countries… I wonder if you can…” John Lennon

Well, it’s hard for me to imagine no countries. Good luck with that. So, vcif, I suppose a country “following” Austrian Economics would either abolish government regulation or do everything it could do to minimize government interference in the economy. Would it have a volunteer police force and volunteer national defense force?

noah July 8, 2011 at 11:29 pm

“Economists were stunned.”

Seems to be the line used by most the major media. Guess none of them ever visit this site.

El Tonno July 9, 2011 at 3:53 am

Nah, it’s the cattleprods.

Ned Netterville July 9, 2011 at 8:00 am

Another “conservative” Brit–the Iron Lady–said, “The problem with socialism is that eventually you run out of other people’s money.” Thatcher was right on, of course, but the problem with governments–liberal or conservative–is that when the State run out of taxpayers’ money, no matter what its leaders political persuasion, the central bank will be allowed and encouraged to print more of money to see it through the crisis. For liberals and conservatives, Republicans and Democrats, the survival of government is paramount, because the State is their only means of getting their hands on OPM (sounds like opium, is equally addicting, stands for other people’s money) without going to jail.

Forest Queen July 9, 2011 at 11:51 am

For some reason that I don’t spend the time to figure out, I haven’t been able to post in ..a long time.

Forest Queen July 9, 2011 at 12:19 pm

So, of course, that posted. Do you guys really beLIEve there’s a debt? Those who ignore history are doomed to repeat it. GREAT Depression (Great?) orchestrated by Roosevelt, who had to have a closed-coffin due to execution-style (gun to head) murder. Gov’t plays great paupers to the media for presentation to the public, while at the same time having the net worth of a million Bill /gates. The perspective you are spoon-fed from the gov’t is NOT in your best interest, but in theirs. As the US INC/local gov’t financial “empires” continues to grow world-wide. Go to your county/city sites and just look at how many gov’t employees there are. Look at the ‘create jobs’ list -hiring list. I think a psychiatrist (one of 15 on this week’s list here in N. Cal) wage of $9,000 BI-WEEKLY!!! plus ludicrus benefits and on-call overtime wages etc., etc., etc., is a BIT MUCH. No, I don’t for a nano second swallow this same ol, same ol dragged-out AGAIN, wah, wah, Budget woes. LET’S SEE THE BOOKS-ALL OF THEM. Just like the GREAT Depression was a big lie, so is this, AGAIN. Didn’t Hitler say that the bigger the lie, the more people believe it? With 13 auditors on the county payroll, you’d think the public would hear a sweeter/truer sound wouldn’t ya? 98% of the HUGE gov’t employed don’t have a clue. It’s up to us, we’ve created this crisis with opportunity right beside it.

El Tonno July 9, 2011 at 6:00 pm

Your rantings are not welcome here.

Forest Queen July 9, 2011 at 12:52 pm

Why do I have such a time with this site? Anyways, do you people really beLIEve there’s a debt? Gov’t plays great paupers to the media for presentation to the public. While at the same time having a net worth of a million Bill Gates. Check your county/city site – how many employeed? Wages, benefits, retirement at 50 w/ludicrous pension etc., etc., etc. Now check their ‘create jobs’ list – probably the same all over. The county I’m in, in N. Cal., has 15 job (not work) listings. Psychiatrist – $9,000 BI-WEEKLY! plus benefits too numerous to list. Now check THEIR union site – gazillions invested globally. ‘Budget’ woes – such horse hockey. It’s not the BUDGET we want to see, it’s the Revenue and Expense accounts. You know, the ones the public, or the Grand Jury, don’t have access to. Yes, we do indeed need new entities in place, us, as we emerge from the federal cocoon. The current gov’t employees aren’t capable, incapable of thinking to have a thought. I, somehow, got on this great site a week or so ago – CAFR–Comprehensive Annual
Financial Report. The guy lives in Prescott, AZ and has been at this for about a decade. April 11, Arizona’s Legislature passed a ‘bill’ to implement his brilliant plan.

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