Tuesday, December 29, 2015

What multipliers greater than oner?

Multipliers may be greater than  one if you use Magic Walrus.  But Magic Walrus is proven wrong.

A straight look at changes in government spending vs changes in real GDP shows multipliers less than one,  During the stimulus, federal spending up, growth down.  After the stimulus, federal spending down, growth up.





How does Krugman get good multipliers/   He artificially separates structural deficit from cyclical.  But it ain't so, the potential growth rate has been dropping for 15 years, since 2000.  Now we have a big spending surge, thanks to Paul Ryan, and growth is dropping.

And if Magic Walrus is correct, the  why do the recessions fall on  presidential election boundaries.  Nor do they explain  why the California public sector state goes through huge unemployment spirals.  All of this evidence poin ts to he Kanosians as the ultimate culprit in the recession cycle.

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