Politico says it’s more of a “chicken little” situation. Regardless of what fable the partial “shutdown” and renewed debt limit debate most resembles, president Obama has lost credibility with the American public on economic matters. (And other matters too. Remember last month’s crisis in Syria?)
This is a very important thing to understand. We are told over and over that government spending creates jobs and that through the multiplier effect the economy can then blossom. But time after time after time we see that this does not happen. Yet many still believe that something can be had for nothing. Many very respectable people believe like members of a cult. The cult of Keynes.
In a recent review of a book by David Stockman, Laurence Siegel, the uber-respected director of research at the Research Foundation of CFA [Certified Financial Analysts] Institute in Charlottesville, VA, had this to say about the Keynesian policies that currently guide world governments:
“It is hard to overstate the extent to which the following Keynesian views are simply assumed by people to be correct:
Don’t worry big government folks. We won’t be entering into anything that looks like a period fiscal restraint even if sequestration actually happens. (I still think Congress will weasel out of it.)
The financial planers of the rich were very busy leading up to the ball drop on New Years Eve. Everyone from George Lucas to families with long ailing patriarchs had to make some tough decisions. (In the latter case whether to take great grandpa off of life support.)
This country has become more and more and more regulated with each passing year. Nearly every part of our lives, and essentially, every single bit of our business lives, is touched (molested?) by government.