Liberals’ Plan to Stimulate Inflation By Thomas E. Brewton

As success with the military surge in Iraq increasingly belies their claim that the war is already irretrievably lost, liberals have changed the subject from Iraq to the economy and the rising possibility of a recession.  Liberal Republicans and Democrats, as usual, prescribe Federal deficit spending and higher taxes on “the rich.”

That is the doctrine of Keynesian economics, which advocates consumer spending as the exclusive highway to full employment and prosperity.  According to Keynes, consumer and business savings must be offset by massively increased Federal spending.  What the money is spent for doesn’t matter; just flood the market with money created by bookkeeping entries at the Federal Reserve banks.

Full Article ...

Sphere: Related Content