INTERNAL AD / MIKE'S AMAZING BOOKS / PDFS
NEW AT AMAZON!
Comes with full access link to all 30 PDF books and pay-to-view content!
Be sure to submit your E-mail there! (Allow a few hours to receive)
September 18, 2024
* Real News & History / ANYT receives and welcomes the support of honest and peace-loving people from all races, religions and nationalities.
.
NY Times: Biden’s Stimulus Juiced the Economy, but Its Political Effects Are Muddled
When President Biden signed the stimulus plan into law in 2021, his aides were confident that it would help accelerate the nation’s recovery from the pandemic recession.
*
Rebuttal By
In the upside-down insular world of Keynesian / Marxist macro-economic theory -- a school of quackademic crack-pottery which holds that prosperity and abundance flow from government manipulation and bureaucratic interference -- the state can "stimulate" the economy by taxing and/or further indebting the already indebted people, and then either spending or redistributing the stolen loot. This idea -- enshrined at our most hallowed "institutions of higher learning" -- is akin to trying to increase a sleepless man's alertness and energy levels by making him drink more coffee, all the while ignoring the underlying problem of the caffeine overdose that is preventing him from sleeping well each night..Consistent with the fact that the Slimes is under White Hat control, the Q York Times article stealthily praises Trump's "stimulus" â„¢ while criticizing "Biden's" 2021"stimulus!" â„¢ --
.
On Trump 2020:
.
"Economists say the relief package, along with stimulus measures Mr. Trump signed into law in 2020, has helped accelerate America’s recovery from the pandemic recession. The United States has grown and added jobs in a way that no other wealthy nation has experienced after the pandemic."
.
On "Biden" 2021:
.
"The American Rescue Plan, which the Biden administration created and Democrats passed in March 2021, has fueled discontent among voters, in sometimes paradoxical ways. Some Americans blame the law, which included direct checks to individuals, for helping to fuel rapid inflation..Polls show that Americans continue to favor Mr. Biden’s opponent, former President Donald J. Trump, on economic issues. Relatively small slices of the electorate believe Mr. Biden’s policies have helped them or their family financially."
.
Trump did good, "economists say." But Biden did bad --- "polls show." Amazing.
.
.
Switching to the economic fallacy of "stimulus" â„¢ now, it must be better understood that such schemes are supposed to "prop up" that which the Federal Gov and Federal Reserve are destroying in the first place! The fact that heavy taxation, regulation and inflation -- and, in 2020-21, the Stupid-19 lockdowns -- have always been the true foundational causes of economic stagnation is not even considered. It's always more forced coffee for the sleep-deprived man -- when all he needs is to be left alone in a quiet room with a warm comfy bed.
The pro-stimulus element of the article (necessary for protecting Trump as well as maintaining Keynesian "street cred") represents a textbook example of what the 19th Century French free-market economist, Frederic Bastiat described as, "The Broken Window Fallacy." Forget about ever re-educating the dogmatic econo-eggheads of Harvard about basic macro-economics. But methinks "youse guys" would surely appreciate the simple logic behind Bastiat's "Parable of the Broken Window" (From "That Which Is Seen and That Which Is Not Seen"). It's a timeless classic -- very short and sweet too. Here it is: ."Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son has happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact that every one of the spectators, thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation – "It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers (glass cutters / installers) if panes of glass were never broken?".Now, this contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions..Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier's trade – that it encourages that trade to the amount of six francs – I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen..But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, "Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen.".It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented.".Tell it, Monsieur. Tell it!.
Broken windows and the shifting of a pile of cash from over here to over there does not create wealth.
.
The lesson of Bastiat's allegory is this: Money taken from taxpayers to inject into one sector of the economy deprives another sector of the economy of that same investment. And if the "public" expenditure does not add to the net wealth (GDP), society will actually become poorer because of the transfer scheme..Bastiat's clear, concise and passionate writings (The Law, Economic Sophisms, The Man and the Statesman), were penned at a time when more and more French "intellectuals" were becoming smitten with Marxist-style foolishness. His writings are essential and understandable reading for free-market / sound currency liberty lovers. It's a damn shame that most of today's economics majors will never even be exposed to Bastiat, or others like him.
*
Frederic Bastiat
1801-1850
Boobus Americanus 1: I read in the New York Times today that although Trump's 2020 stimulus plan had a positive effect, Biden's 2021 stimulus may have been inflationary.
Boobus Americanus 2: I have to admit, on economics, it does seem that the Trump stimulus performed better than Biden's.*St. Sugar: Both were actually economic depresssantss, dumb-ass! -- not sstimuluss!
Editor: Indeed. If taxing, borrowing, inflating and spending were the solutions, we'd all be rich by now!
Boobus Americanus 2: I have to admit, on economics, it does seem that the Trump stimulus performed better than Biden's.*St. Sugar: Both were actually economic depresssantss, dumb-ass! -- not sstimuluss!
Editor: Indeed. If taxing, borrowing, inflating and spending were the solutions, we'd all be rich by now!
* Comes with full access link to all 31 PDF books and pay-to-view content.
Be sure to submit E-mail there. (Allow a few hours to receive)
NEW AT AMAZON!
Please share this article -- copy & paste the heading and link below to your social media pages and emails.
The Marxist Myth of Economic Stimulus https://www.realnewsandhistory.com/anyt-09-18-24
Comments(All comments are read, but not always responded to)