Predict the Obama Presidency

[opebo]

The bad news is that the economic troubles in this country will prevent him from doing a lot of things he wants to accomplish (universal healthcare). 

As I have often pointed out, the solution to the economic troubles is spending - huge, costly new redistributionist government programs.  As Keynes taught us, and as history has proven, nothing else will work.

So the economic troubles will not prevent him from doing a lot of things that he wants to accomplish, they will require that he accomplish them, and enable him to do so.

Remember that the only time America has ever been able to break the stranglehold of the owners and accomplish reform is during periods of severe crisis, most notably the Great Depression.

[opebo]

As I have often pointed out, the solution to the economic troubles is spending - huge, costly new redistributionist government programs.  As Keynes taught us, and as history has proven, nothing else will work.

The purpose of Keynesian countercyclical deficit spending is NOT wealth redistribution.  The purpose is to place capital in the hands of consumers in order to stimulate the economy through increased demand, and to prevent individuals from being permanently ruined by economic forces they cannot control.

To call Keynesianism "redistributionist" is a gross distortion.  Outlawing wealth and success is not the way to promote economic growth.

Beef, I never said that Keynesianism was redistributionist in intent.  Keyensianism is redistribution as a practical matter.  As you stated it, the purpose is 'to place capital in the hands of consumers in order to stimulate the economy through increased demand' - this is quite correct (though it is somewhat bizarre to call this type of dole spending 'capital'), and thus Keynesianism is redistributionist simply because that is what works.  Only the poor spend the money you give them during a Depression.

Which brings me to a response to the above post by Frodo - you want to encourage saving in the middle of a depression?  Do you not understand what is a depression?  We need to encourage spending, not saving.

[opebo]

If the root of the economic crisis is a credit crunch, then increased savings (and paying off of debt) is exactly the solution.  More money on deposit = more money available as credit = more loans to businesses and investment in securities.  That money creates jobs and growth.

You're mad!  There are plenty of 'savings', they're just not getting loaned out, Beef.  The trick is to force the 'money' out - either by simply printing it and sending it out to the people through both free giveaway programs and 'loans'.  You really have no idea what a crisis like this is all about.

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Those are exactly the same thing, Beef!  Where do you think consumption comes from?  It comes from credit.  'Capital' doesn't even enter into it, as there is plenty of that, it is just sitting under the mattress - just as it did during the Great Depression, just as it always does during panics (such is the nature of 'private' capital).