We have said before that we were among those who snickered at the idea that Barack Obama would make history during his hype-filled election back in 2008.
But we continue to be proven wrong.
Today, the WSJ wrote the obituary of the big government economic theory emeritus first articulated by John Maynard Keynes.
The cause of death for Keynesian economic theory? Why none other than the disastrous and failed Kenya-nesian policies of Barry O.
Lovers of free enterprise and supply-driven economics, this one's for you at full length.
Imagine if President Obama had introduced his original stimulus in February 2009 with the vow that, 26 months later, GDP would be growing by 1.8% and the jobless rate would be 8.8%. Does anyone think it would have passed?
Liberal economists will blame this latest slowdown on spending cuts across all levels of government, and government spending did fall in the first quarter. But those modest declines follow the biggest government spending binge since World War II that was supposed to kick start the economy and then stop. Remember former White House chief economist Larry Summers's mantra that stimulus spending should be timely, targeted and temporary?
With deficits this year estimated to hit $1.65 trillion, are we really supposed to believe that more deficit spending will produce faster growth? Would $2 trillion do the trick, or how about $3 trillion? Two years after the stimulus debate began, the critics who said all of this spending would provide at most a temporary lift to GDP while saddling the economy with record deficits have been proven right.
You can check out the whole piece here.