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Friday, June 4, 2010

Keynesian Fail Continues -- Robert Reich

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How does Reich open his latest piece in Business Insider?
We’re falling into a double-dip recession.

The Labor Department reports this morning that the private sector added a measly 41,000 net new jobs in May. (The vast bulk of new jobs in May were temporary government Census workers.) But at least 100,000 new jobs are needed every month just to keep up with population growth.

In other words, the labor market continues to deteriorate.
Remember this is Reich....the Keynesian left talking.
So, what is Reich's solution after 2 years of the greatest stimulus spending in US history?

So what’s the answer? In the short term, more stimulus...
...
We have to get to the core problem: a middle class that doesn’t have the dough to buy the goods and services the economy is capable of producing. Where to start? Expand the Earned Income Tax Credit and extend it up through the middle class.

Spend, spend, spend, spend!

Like Brad Miller, Robert Reich thinks it is best to keep screwing that (Keynesian) chicken.





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