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Source link: http://archive.mises.org/9500/is-bill-clinton-a-non-keynesian/

Is Bill Clinton a Non-Keynesian?

February 24, 2009 by

In a recent interview on Larry King Live, featured today on the site as “Larry King’s Podcast,” there is an interview with Bill Clinton. King asked Clinton whether the stimulus bill would work. Clinton responded that “I think it will do what it is designed to do,” and then he talked about the three things it would do. Only one of them, the third point, was “creating jobs,” and was the only one with a whiff of Keynes about it, it seemed to me. He said that the bill “was sort of our bridge over troubled waters,” and that the real issue was declining asset values, which the bill did not address.

This doesn’t sound like Keynesian stimulus. It’s not giving Keynesian programs “their first real test” as ballyhooed about on This American Life (a radio program featuring Tyler Cowen and Alan Binder; podcast #373: “The New Boss”). The business about declining asset values seems very non-Keynesian, doesn’t it? How could it be Keynesian? It doesn’t stress fiscal policy as a solution to insufficient demand.

{ 10 comments }

Justin February 24, 2009 at 1:02 pm

I think they’ve realized that they’re not going to have an uptick in GDP for 2009 and the equity markets may not be anywhere near 10,000 on the Dow Industrials (I know these are terrible metrics, but they’re common quick barometers for most people). They even came out with Bernanke saying that the economy would not recover for 2 or 3 years. They’re attempting to temper the public to another round of government spending by saying “this might not be enough”.

D.C. is still in panic mode and they realize they’re running low on public support.

ehmoran February 24, 2009 at 1:12 pm

Justin,

You are exactly right about “more spending”.

And during his administration, he was Keynesian. But then again, we must remember White Water. So, is he also greedy and a power monger (Oligarch)?

brannigan February 24, 2009 at 2:46 pm

You forget that President Clinton was the most free market friendly president since Harding. Don’t let the (D) after his name fool you.

ehmoran February 24, 2009 at 3:27 pm

But he also believed in Gov’t money pumping….

John Tate February 24, 2009 at 4:37 pm

Eh, watch them try money pumping. They will never get it right.

ehmoran February 24, 2009 at 4:55 pm

John Tate,

Well, or course they won’t, but oh how it makes Americans feel better to know the Feds “can fix this”. They continually try “fixing things that aren’t broke” and now they’ve just about completely destroyed it. Give ‘em time, MORONS.

You know, I was thinking about this for a little, that’s all I could take without shooting myself or my TV. The Feds have to continue intervention in the Market because they’ve interfered in this so-called “Free Market” for so, so, very long. If they stop, it would completely collapse (and I mean Armageddon) every other economy (Socialists and Communists) in the World. Almost like drug addiction. Since our partial capitalist system and what’s left of it has propped every other economy in this World since the 1790′s.

I emailed my Senator and asked her “when Congress, Senate, and/or the President were going to tell the American people that the only way out of this Economic nightmare was through a Deep Depression, basically caused by our Entitlement Programs build since the early 1900′s”.

No Answer yet……

Milan February 25, 2009 at 10:54 am

You forget that President Clinton was the most free market friendly president since Harding. Don’t let the (D) after his name fool you.—–

Oh really? How many countries did he put sanctions on? How many wars did we enter? Clinton is a moron. Didn’t you just hear him say that the bill doesn’t do enough because it includes too much tax breaks! He said there are hundreds of studies that say tax breaks don’t help an economy. Very free market.

Pat February 25, 2009 at 10:29 pm

“You forget that President Clinton was the most free market friendly president since Harding. Don’t let the (D) after his name fool you.”

Which of course is why he tried to ram socialized medicine down our throats, increased taxes, tried to destroy the gun industry with the AWB and frivolous lawsuits, strengthened the CRA, and sicced Janet Reno on those nasty banks that wanted to make loans to people who, you know…repay them.

ehmoran February 25, 2009 at 11:01 pm

We’d better watch what we say here,

Our plane might be downed by shoulder fired missiles that only some highly industrialized Govt could possibly build,

Or we might conveniently commit suicide and leave a note on a park bench in Central Park, New York City.

But, I guess, only if we made Real Estate deals with him and had to testify before Congress about our business dealings?

charles F. Morton March 6, 2009 at 6:29 am

As I remember Keynes, he said, Government Spending should be counter-cyclical to the economy. It should spend more when times were bad, and spend less when times were good. This would give government more bang for the buck because prices are lower in recession and higher in booms. It would also even out employment.
The trouble is that we have only adhered to his first recommendation and have not paid down our debt during good times!

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