Wednesday, December 24, 2014

Finding Keynesians multipliers?

Krugman is a big fan of stimulus, so how about Krugman do a regression analysis in this series which contains DC spending as a percent of nominal GDP.  Notice that government spending continued to eat up a greater percentage of the economy from 2006 to 2010, all the way through the crash.  The voracious appetite for Republican and Democratic spending is clearly associated with the second worst crash in the last 100 years.

Kenyesians cannot find one bit of good news to tell us in this chart. The possible exception is the 2002 year in which war spending just started to ramp up. And second, how do the Keynesians hide the declining share of federal spending during the Clinton growth years?

Keynesians have absolutely no basis in fact, to support government spending, stimulus or otherwise. And Cristina Romer statistical fraud will not do. So the Keynesians associated with the Bill Clinton administration are forced to admit their own duplicity, and the Keynesians associated with the Obama administration got fired for good reason.  And they have no clear regression analysis they can do, they simply resort to fraud and hand waving.

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