Academic

GOVERNMENT IS BORROWING, CORPORATIONS ARE SAVING. COINCIDENCE? ?For a Keynesian, it?s always 193?

By Glenn Reynolds

GOVERNMENT IS BORROWING, CORPORATIONS ARE SAVING. COINCIDENCE? “For a Keynesian, it?s always 1933. But it may very well be 1973, instead: the doorstep of stagflation.”

Plus this: “Once this latest round of stimulus (in the form of expanded unemployment benefits) has gone out the door, we will have spent more trying to stimulate the economy than we spent on the Iraq war and the Afghanistan war ? combined. To what end? Ten percent unemployment? A tottering recovery? The Democrats will argue that things would have been worse without the stimulus, that it would have worked better if it had been larger, etc. That hypothesis has the political advantage of being unfalsifiable. But we can look around the world and see that other countries that have enacted proportionally smaller stimulus programs have fared better than we have. (The Germans, of all people, are wondering what has gotten into us, why we seem to be going all Italian.)”

Full post as published by Instapundit.com on July 22, 2010 (boomark / email).