We are being fed the line from the Administration and Keynesian/neo-Keynesian economists that what we don’t need now government spending sanity, but more stimulus. So here’s the background and then the question …

A leading if not the primary cause of the current recession is the result of 20 years of government stimulus in the form of the government push for low/middle income housing. Now the difference there is during the last 20 years the government stimulus has been in the form or high risk loans which were then repackaged and sold to large banking establishments and foreign investors. This is to be distinguished from the current stimulus which comes in the form of government giveaways which are underwritten by large banking establishments and foreign.

So … if Keynesian stimulus is a primary cause of this recession, why then do Keynesian think that is the fix?

Related posts:

  1. Offbeat Question Day: Stimulus
  2. Considering the Stimulus and the Response
  3. How Effective Is the Stimulus?
  4. Real Stimulus?
  5. On the Stimulus

Filed under: Government • Mark O.

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