Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.
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Could it be possible that Keynesian and the usage of monetary policy work well in conjunction? Like, while the government prints money and there is an inflation coming up, couldn’t the Fed take away the money in the economy (buying bonds, discount rate, and maybe reserve rate).
BUT then again, isn’t Fed the one who is printing money? I’m confused because this video says that government prints money.
I love the part when he says that, “…that option (stimulus) is thankfully not on the table,” since it would lead to what occurred in Zimbabwe. Our politicians don’t seem to pay attention to such economic desasters.
I completely agree with it all…but I hate his voice.
look at china and India look at their economy in relation to where they spend it all i see is education and infrastructure. plus do anyone remember the oil shock of 2008 the chinese government subsidised the price energy which kept their economy from suffering an increase in the price of production which actually triggered this recession “research the role of oil prices in this recession”
why do politicians keep trying the same approach? It buys votes which is ironic since most of them don’t get elected again
so you’re an economics student and yet you’re studying keynesian. Well considering how wrong that model is, it sort of defeats the purpose of doing your course. Let me save you thousand of dollars and just read “economics in one lesson”
doesn’t matter. the point is, government spending doesnt increase the productive capacity of the economy, and therefore doesnt create employment. how can you say oh my fucking god! after seeing the graphs of hoover and roosevelt? youre the one with his shit messed up. consumption doesnt reflect economic growth, production does.
- Henry Morganthau, Treasury Secretary, May 1939
We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong … somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises … I say after eight years of this Administration we have just as much unemployment as when we started … And an enormous debt to boot!
When we borrow money from other nations, we simply have to pay it back with interest. Taking money from the economy to put it back in filters that money through the bureaucracy, wasting good amounts of it on administrative costs and doing little to stimulate the economy. Printing too much new money to pay off old debts creates inflation which is never a good move.
Liberal teachers telling you we need more gov’t spending/more gov’t are wrong and biased in their portrayal.
this guy sounds like an idiot.
Oh my fucking god, being an economics student for my first year college, i can already tell this guys got keynesian concept messed up…
Instead of Government Borrowing in the domestic economy it does it also by borrowing from other countries!
This is right on the money, and really just commonsense. The government is just an expensive, inefficient middleman.
This really is a terrible video poor in its understanding of Keynsian economics and the evidence backing up its refuting it. It really feels like the maker was actually just distorting information to fool some people who may not research what Keynsians do, and what has happened before especially in the great depression period. I was expecting to see some innovative creative points disproving Keynes theoretically but this is shameful.
I have been arguing that there IS a huge difference between rich and poor schools, so I agree with your point entirely.
Have a good evening.
There are many differences in quality. I came from an upper-middle class school district and we had more privileges such as: laptop computers, Promethean boards, and a larger quantity of electronic technology. The chances of getting a better education in a wealthier school district are greater than those of poorer neighborhoods.
cutting education is the road to third world country status- avoid it as much as possible.
running deficits now to pay for education is good policy. Running deficits now to pay for corporate resource wars is awful policy- and I wish the right would speak out against that fraudulent abuse once in a while.
States cutting education will be absolutely SCREWED tomorrow.
This isn’t rocket science- education is an INVESTMENT.
Deficits are the road to oblivion. Avoid them as much as possible. After foreign countries start asking for their money back that they loaned to the U.S. the standard of living for Americans will decrease dramatically. People may not be feeling the effects of the United States debt but they will in time. When that happens it will be much worse than the current recession.
I don’t mean this in a rude manner, but do you understand Laissez Faire? It is French and it means “leave it alone”. Government should intervene as little as possible in the direction of economic affairs. That is what’s BEST for the economy. The economic downhills that occur every few decades will come and heal on their own. What people don’t need is government getting involved and taking over everything. Private business creates jobs NOT GOVERNMENT.
Great video!
Thanks for posting!
“Government must take money out of the economy to put it back in”
1) Money can be borrowed from foriegn nations on loan.
2) Taking Money out of the hands of the wealthiest puts it back in the hands of those less likely to be employed during a recession. The “pie isn’t any bigger”, but it is better eaten.
The lack of growth and employment was clearly caused by failures of the private sector (see 20′s Stock Market practices), which also caused unemployment, as it has today.
@tristramshandy3 I live in MD. Highest ranked in both education and WEALTH.
“And you are making the very common mistake of thinking money DOESN’T matter”
Please show me where I stated that.
And let’s see your data, please.
typically, when they rank education every year, those so called ‘blue” states in the northeast dominate, and the so called “red” states of the southeast linger behind.
I think if you spend a good deal of time in either region, you can see this difference easily enough.
a conservative state is one which is usually dominated by republican legislatures, and when the going gets tough, they look to cut social services and education spending first.
It’s a mistake.
And you are making the very common mistake of thinking money DOESN’T matter, or isn’t one of the PRIMARY factors when it comes to quality of education.
Try an experiment- visit a school in a poor neighborhood, then one in a rich neighborhood. Tell me how that goes- tell me what, if any, differences u c.