A day after purchasing managers reported an "unexpected" slump in manufacturing, another surprise report shows consumer spending falling for the first time in nearly two years. Double dip, anyone?
Despite the largest Keynesian spending splurge in the history of the planet, the economy continues to founder.
Yep, history repeats.
Perhaps, as Keynesians argue, what we needed for Keynes to have worked was more spending as in the case with WWII.
However, when being asked to believe that WWII represented a Keynesian success, we are being asked to believe that Keynesian solutions require us not only to raise national spending to well over 60% of GDP, but that we must also destroy the industrial capabilities of friend and foe alike, destroy their infrastructures, destroy their homes and cities, kill a large part of their workforce, have them kill a large portion of our workforce, and then have them pay for retooling our economy so that we may sell them goods, climb back from recession and give Keynes a pat on the back for a job well done.
Really? We have to do all this to make Keynesianism work?
If it takes rehashing WWII for Keynesianism to work, I want no part of it. And when Keynesians have only WWII to rely on as an example of a Keynesian success story, they have lost their argument.