White House Stimulus Report Based on “Keynesian Fairy Dust” – Daniel J. Mitchell – Townhall Finance Conservative Columnists and Financial Commentary – Page full

Minn Fed Recovery Jobs Data…how, pray tell, did the White House know what jobs and growth would have been in a hypothetical world with no stimulus? The simple answer is that they pulled numbers out of thin air based on economic models using Keynesian theory. …Keynesian economics is the perpetual motion machine of the left. They build models that assume government spending is good for the economy and they assume that there are zero costs when the government takes money from the private sector. That type of model then automatically generates predictions that bigger government will “stimulate’ growth and create jobs. The Keynesians are so confident in their approach that they’ll sometimes even admit that they don’t look at real world numbers. And that’s what the White House did in its estimate. The jobs number (or, to be more technical, the job-years number) is built into the model. It’s not a count of actual jobs.

via White House Stimulus Report Based on “Keynesian Fairy Dust” – Daniel J. Mitchell – Townhall Finance Conservative Columnists and Financial Commentary – Page full.

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