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  • Keynesian economics

    NYT Laments the Failure of a Doomed Policy

    The New York Times got it half-right. Friday’s jobs report was highly discouraging, causing the Times to reflect that “there’s just no positive spin for this.” And you’d better believe they tried. In July, there were 131,000 jobs lost, and the unemployment rate held steady at a worrisome 9.5 percent … More

    Obamanomics 101: Failure Explained

    According to President Obama, “every economist who’s looked at it says that the Recovery Act has done its job.” The four economists gathered at the National Press Club on Tuesday were apparently not asked for their opinions on the matter. Tuesday’s program, “Debt and Deficits: Implications for U.S. and Global … More

    Keynesian Doublespeak

    A year ago, President Obama warned the American people that the financial crisis was dire and required a whole new approach to government spending. Obama argued that the government must help America spend its way out of the recession, and his economists, using Keynesian multipliers, argued the “stimulus” would keep … More

    In Their Own Words: Spending Our Way Out of the Recession

    House Majority Whip Rep. James Clyburn (D-S.C.) was quoted in The Hill earlier this week discussing the country’s economic outlook. Despite the President’s recent efforts to talk about savings, Rep. Clyburn took a different tack, saying that “wouldn’t help alleviate the recession.” He added, “We’re not going to save our way out of this recession. We’ve got to spend our way out of this recession, and I think most economists know that.” More

    Japan Leads the Way Down a Dark Hole

    Japan’s newly minted finance minister, Naoto Kan, seems an excellent choice to lead Japan on an expedited road to fiscal perdition. For those who argue the best way to deal with the coming financial crisis is to precipitate it quickly, Mr. Kan’s choice should be particularly welcome. The governments of … More

    CBO Says Stimulus Is Working Because We Predicted It Would

    The Congressional Budget Office today released a report asserting that the stimulus succeeded in creating growth and jobs. If this seems completely detached from reality, it’s because CBO did not actually analyze the performance of the economy — including the rapid increase in the unemployment rate since the stimulus was … More

    In the Green Room: MEP Daniel Hannan

    Member of the European Parliament Daniel Hannan came to Heritage today to remind Americans why and how to avoid Europe’s mistakes. On March 24, 2009, Daniel Hannan became an overnight internet sensation when a YouTube recording of his three-minute speech responding to British Prime Minister Gordon Brown’s remarks before the … More

    Morning Bell: The Obama Depression

    The Heritage Foundation does not believe in Keynesian economics. We do not believe that massive government spending has a “multiplier effect” which turns the initial amount of money spent by the government into an even greater increase in national income. Economic studies of projects claiming to have a “multiplier effect” … More