{"id":15790,"date":"2010-12-01T08:30:51","date_gmt":"2010-12-01T14:30:51","guid":{"rendered":"http:\/\/www.shotinthedark.info\/wp\/?p=15790"},"modified":"2010-11-30T21:27:09","modified_gmt":"2010-12-01T03:27:09","slug":"3-out-of-4-big-brained-economists-surveyed-say-the-president-is-a-dummy","status":"publish","type":"post","link":"http:\/\/www.shotinthedark.info\/wp\/?p=15790","title":{"rendered":"3 out of 4 Big-Brained Economists Surveyed Say&#8230;"},"content":{"rendered":"<p>&#8230;the President assertions that:<\/p>\n<p>1) The stimulus didn&#8217;t work because it wasn&#8217;t big enough<\/p>\n<p>2) What we need is <em>more<\/em> spending<\/p>\n<p>3) And higher taxes<\/p>\n<p>Are<\/p>\n<p>1) Wrong, 2) Wrong and 3) Wrong.<\/p>\n<blockquote><p><a href=\"http:\/\/online.wsj.com\/article\/SB10001424052748704679204575646994256446822.html?mod=WSJ_Opinion_LEADTop\">economic theory, history and statistical studies<\/a> reveal that more taxes  and spending are more likely to harm than help the economy. Those who  demand spending control and  oppose tax hikes hold the intellectual high  ground.<\/p><\/blockquote>\n<p>Which tickles just a bit as surely President Obama has staked out the intellectual high  ground, right?<\/p>\n<blockquote><p>Using powerful statistical methods to separate these effects in U.S.  data, Andrew Mountford of the University of London and Harald Uhlig of  the University of Chicago conclude that the small initial spending  multiplier turns negative by the start of the second year.<\/p><\/blockquote>\n<p>Sound familiar?<\/p>\n<blockquote><p>government purchases have a GDP impact far smaller in New Keynesian  than Old Keynesian models and quickly crowd out the private sector. They  estimate the effect of the February 2009 stimulus at a puny 0.2% of GDP  by now.<\/p><\/blockquote>\n<p>That&#8217;s <em>two tenths<\/em> of a percent.<\/p>\n<blockquote><p>By contrast, the last two major tax cuts\u2014President Reagan&#8217;s in 1981-83  and President George W. Bush&#8217;s in 2003\u2014boosted growth. They lowered  marginal tax rates and were longer lasting&#8230;tax cuts  have been far more likely to increase growth than has more spending.<\/p><\/blockquote>\n<p>Read it. It&#8217;s a bit technical, but it serves to reveal a President whose recently and soundly rejected policies are founded not in economic efficacy rather at best, in ignorance and at worst, and most likely, in an arrogant, transparent and desperate attempt to further his extreme liberal ideology.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230;the President assertions that: 1) The stimulus didn&#8217;t work because it wasn&#8217;t big enough 2) What we need is more spending 3) And higher taxes Are 1) Wrong, 2) Wrong and 3) Wrong. economic theory, history and statistical studies reveal that more taxes and spending are more likely to harm than help the economy. Those [&hellip;]<\/p>\n","protected":false},"author":228,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57,51],"tags":[],"class_list":["post-15790","post","type-post","status-publish","format-standard","hentry","category-economy-and-the-market","category-liberal-tyranny"],"_links":{"self":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/15790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/users\/228"}],"replies":[{"embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15790"}],"version-history":[{"count":19,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/15790\/revisions"}],"predecessor-version":[{"id":15803,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=\/wp\/v2\/posts\/15790\/revisions\/15803"}],"wp:attachment":[{"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15790"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.shotinthedark.info\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}