John Keynes or The Republican Party?

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I just heard Paul Ryan talk about free enterprise with reduced government spending and regulation, as if he understands the macroeconomic effects of a non-moderated private sector left to do business however it sees fit.

EVERY company operates with a goal of making a profit and that is a very good thing. At least up until a point; when the consumer is being taken advantage of. The finance and mortgage sectors reached this point and what a crash. Am I supposed to believe the very same sectors are capable of spearheading the necessary job creation this economy so badly needs? Capable, may be. But will they lead? Hell no. Will the energy industry lead? I don't think so. What about manufacturing, construction, tech and agriculture? I doubt it. And why wouldn't they lead in job creation? Because the economy is in bad shape. They are uncertain and unwilling to take the plunge. Who is left? The government. The private sector is ALWAYS self-serving and can't be afforded otherwise.

A reduction in taxes to assist small business with hiring doesn't work in such an economic climate either. If the government isn't spending, big companies will not spend and neither will small business. Businesses tend to smell blood when the government isn't spending, even though there may not be reason to panic. It's only a natural business reaction. What if Rick Schwartz, Frank Schilling, Brian Null and other great domain investors suddenly stopped buying domains? Would you continue to buy? Wouldn't you be curious to find out why they stopped buying? Same thing with the economy. The government stops spending and you have John Doe in Iowa wondering why government subsidies aren't as readily available to help small farmers grow. So John Doe doesn't hire.

Now the Republicans will have you believe that if Keynesian economics works, unemployment would have reduced significantly. That's BS. It didn't take the largest economy in the world 2 years to get sick did it? It took 4 or more years. Things in economics take time to manifest, especially given the size of the American economy. Why do Republicans think there is a quick fix for job creation? It is a scary thing to have politicians make decisions about economic direction without simple understanding of the simplest macroeconomic principles. It is unfortunate that macroeconomic effects aren't felt overnight. So I understand the Obama administration's reticence in spelling out the fact to the unemployed.

As far as the debt is concerned, really, who are we kidding? No one cares about the debt. If we did, we all would have agreed to no tax cut extensions, with the knowledge that it was a necessary sacrifice. Nonetheless, tax cuts aren't necessarily a bad thing. But having tax cuts coupled with a reduction in government spending and a call for little government interference in the marketplace is a trifecta recipe for economic disaster.

There is someone on here (you know yourself) who chastises the Obama administration for spending BORROWED money. To that I say read Keynesian economics and pay more taxes.

If Keynes is the teacher, the Republican party is the student that refuses to learn. Who to believe? I'll go with the teacher, thank you.

The Republican party needs to back off.

[fab]

The answer is Keynes was wrong. I would suggest reading or watching (YouTube et.al.) Milton Friedman, Thomas Sowell, Walter E. Williams, et. al.

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And the Repulicans are right?

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Carmen Reinhart, Maryland prof: Painless deficit reduction is like trying to lose weight w/o dieting or exercise

[fab]

John keynes is an Economist, like Friedrich Hayek. Republicans and Democrats are political parties, which is where the problem lies, and why small government is necessary, since government is inherently corrupt.

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That is the smartest argument I've heard regarding the reduction in size of government, even though I don't mind government being big enough to regulate markets.