The Keynesian 'Wall Street Journal'

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Title : The Keynesian 'Wall Street Journal'
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The Keynesian 'Wall Street Journal'

The Wall Street Journal is out amongst its "The Economic Forecast for 2019," for its paid-subscribers.

The 2nd paragraph of the study begins:
The past times twelvemonth was marked past times potent United States economical growth, supported past times a flare-up of financial stimulus from federal taxation cuts together with spending increases.
This is pure Keynesian trend analysis, where Keynes was wrong. Fiscal stimulus does non increment spending, it only shifts spending, primarily from the soul sector to earth sector.

Further, when you lot own got taxation cuts that are non accompanied past times cuts inwards regime spending, you lot merely have a shift inwards the trend past times which the regime sucks coin out of the soul sector. Instead of coin existence taken past times taxation, it is taken out of the soul sector via to a greater extent than regime borrowing which crowds out soul sector borrowing. This is particularly horrific because it shrinks funds flowing to the soul majuscule goods sector, thus, shrinking productivity inside the economy. Or past times Federal Reserve coin printing which puts upward pressure level on cost inflation.

The explosion inwards financial "stimulus" was a negative for the economy.

For a page past times page refutation of the General Theory by John Maynard Keynes, see: The Failure of the New Economics past times Henry Hazlitt.

-RW 




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