SONICFROG DOT NET

Headline Of The Day

From MSNBC:

This ain’t no ‘double dip’ — it feels more like one long dip
Analysis: Textbook policies to restore economic growth in the United States aren’t working because this recession is of a different kind.

Just a thought. Perhaps you’re reading from the wrong textbook!

Stimulus plans worked in certain situations, say during the reconstruction of the post World War II economies of Europe and Japan, but they had nothing else to try, and the money used was not their own, but ours. The New Deal was a mixed blessing. With 1/4 of the population completely out of work, creating work programs was, in my view, the proper thing to do. Unlike the current lame attempt to do so, FDR’s version of stimulus did indeed create jobs, from dam building, to road building, to In our situation, to greatly expanding the power grid. His stimulus included specific “back to work” programs such as the WPA, TVA, CCC etc. Note that these actions did  allow some families to put food on the table, they did not lead to a strong economic recovery.  Obamanomics has failed on both accounts. Other than funding some road construction, Obamanomics has not been shown to create new jobs, has injected massive uncertainty in the markets and economy, has proven hostile to business, and has greatly increased the national debt.

Time to throw away the Keynesian / Krugman game plan and try something else.

Oh, and my friend Dan at Gay Patriot note just how weak the economy is, as the GDP has been revised downward. And with state governments such as California shamefully failing to address their dire self inflicted fiscal mess, expect the next wave of the Second Great Depression to be fueled by states going bankrupt.  Yay. Happy Friday.