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April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Feb. 5, 2009 / 11 Shevat 5769

The ‘Stimulus’ package — all economists agree?

By Larry Elder


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http://www.JewishWorldReview.com | "There is no disagreement," said then-President-elect Barack Obama Jan. 9, "that we need action by our government, a recovery plan that will help to jump-start the economy."


No disagreement?


During the last economic downturn — seven years ago — I interviewed economics professor George Reisman, author of the book "Capitalism: A Treatise on Economics." He reacted to a newspaper article that called government spending a "potent recession cure when administered properly."


Reisman: That is a view held by a large school of economists, perhaps the majority school, for the last 60 years or so. That's the Keynesian school, but there are other economists, like the Austrian school, which holds a very different position. In their view, an essential requirement to a sound economy is balanced budgets with small government. We want government limited to protecting life and property. The government should be attacking terrorists, providing police protection against common criminals, and that should be essentially it, and the people in an environment free from terror will proceed to provide for themselves economically. That has been the basic philosophy on which the United States was built.


Elder: I know you're not a journalist, but isn't it unfair to make (the "recession cure") statement ... as if it's a fact?


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Reisman: No, it is definitely not a fact, and it displays considerable ignorance which leaves out of account any alternative point of view, and in fact, it's easy to argue that deficits can pretty well worsen recessions with depression, because one of the main characteristics of any severe recession is widespread bankruptcies. Deficits contribute to that by withdrawing capital from availability for business. The deficits absorb savings, and those savings are then not available to be lent to business firms in need of credit, so more firms go under than would otherwise have gone under, and that worsens the depression or recession.


Elder: Is it too strong to say that this guy is simply wrong?


Reisman: ... He's definitely wrong. ... It's not deficits in and of themselves that promote spending, although he ... seems to think that a dollar spent by the government is somehow more beneficial than a dollar spent by you or me, which is ridiculous. What people really have in mind, to advocate this position, is that the government will run at a deficit and not borrow from the general public ... but will manufacture the money — print it. So they'll enlarge total spending. So it's this mentality I would think more than anything else that's been responsible for our problems with inflation for the last 65 years or so. Every year, there is more and more money out there. ... The rise in spending just outstrips the increase in production and the supply of goods, and so prices continually rise. ...


Elder: (This article asserts) you can spend government money to get us out of a recession.


Reisman: That's definitely the idea that someone would come away with, and one would have no idea that one would have an alternative way to get out of the recession or depression or what one got us into in the first place. What put us into this recession and what causes every recession is precisely a preceding policy of inflation ... the tremendous stock market boom fed by the Federal Reserve's rapid expansion of money. There was additional money poured into the stock market, and that ... raised prices, and when they decided not to continue that ... then the market fell. It would not have had that terrible fall if it had not had this artificial rise first, engineered by the Fed ... a major aspect of inflation itself.


Elder: The (article) quotes an economist from the so-called "non-partisan" Brookings Institution: "Tax hikes do less damage to the economy during a downturn than an equivalent amount of spending cuts." What does that mean?


Reisman: ... Keynesians argue that if you increase government spending by a dollar and increase taxes by a dollar, that serves to increase national income by a dollar. And that's what's being argued here. The joke of this argument is that the Keynesians are really very ignorant of aggregate economic accounting. ... It's actually possible that by raising taxes a dollar and government spending a dollar, you can raise national income a dollar. But the way that would happen is only if the taxes were paid with funds that otherwise would have bought capital goods, like machinery and equipment.


Elder: Why the widespread myth that FDR's policies got us out of the Depression? Reisman: I think that fits with the statist preconceptions. If you view the government as some kind of deity and you think it's omniscient and omnipotent, then that's your basic expectation. ...


This interview took place seven years ago. Days ago, the libertarian think tank Cato Institute took out a full-page ad. It listed more than 200 economists — by name — who reject more government spending and instead urge tax cuts and smaller government. The full-pager ran in "minor" newspapers, such as The New York Times, the Los Angeles Times and The Washington Post.


So, President Obama, please read these economists' "disagreement." Whip out your BlackBerry.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

JWR contributor Larry Elder is the author of, most recently, "Stupid Black Men: How to Play the Race Card--and Lose." (Proceeds from sales help fund JWR)

Let him know what you think of his column by clicking here.

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© 2006, Creators Syndicate

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