The Other McCain

"One should either write ruthlessly what one believes to be the truth, or else shut up." — Arthur Koestler

Ezra Klein Admits: ‘It Won’t Work’

Posted on | July 16, 2010 | 104 Comments

“Notice that adding new jobs at a rate of 200,000 a month would take us 150 months — or 12.5 years — to get back to normalcy. So far, only April has seen more than 200,000 in non-census jobs growth — and even then, just barely.”
— Ezra Klein, July 16, 2010

Hmmm. Dow Jones Industrial Average down?  What could possibly explain this?

Stocks slumped Friday after earnings reports from two big banks disappointed investors and a survey showed that consumers are becoming more pessimistic. . . .
“It’s mostly about the poor consumer confidence numbers,” said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. “The possibility of a double dip also starts to come to mind” for investors, he said, referring to a phrase that describes the economy falling back into recession.

Wow, who could have anticipated a double-dip recession? How could anyone have foreseen the failure of Obamanomics?

“The unfortunate truth, as sober economists freely admit, is that there is no easy cure for the financial mess caused by the collapse of the housing bubble. . . . Whatever policy Washington pursues, a quick and painless recovery is not going to happen, and the only real question is whether Democrats will delay recovery by implementing liberal policies that make a very bad situation even worse.”
— Robert Stacy McCain, Dec. 8, 2008

“No amount of presidential persuasion, nor any conceivable quantity of federal spending, can repeal the basic economic law of supply and demand. Thus, if Congress should enact this idiotic ‘stimulus’ — a neo-Keynesian pump-priming venture absurdly overbalanced to the demand side of the equation — nothing is more predictable than its failure to spur real recovery.”
— Robert Stacy McCain, Feb. 9, 2009

“Psychobabble about the ‘mood’ of consumers can’t fix the inescapable reality of the capital shortage, a shortage that will only be worsened by the deficit-driven flood of new government debt into the bond market. . . . As if Keynesian theory had not been completely discredited by the ‘stagflation’ crisis of the 1970s, just wait and see what happens now, as unprecedented government deficits siphon already scarce capital supplies away from private-sector investment.”
— Robert Stacy McCain, May 4, 2009

The problem with waiting for vindication in this regard: If liberals were capable of admitting they’re wrong about economics, they wouldn’t be liberals, would they?

UPDATE: Even the Federal Reserve admits it won’t work:

The euro rocketed to a two-month high of $1.29 and sterling jumped two cents to almost $1.54 after the Fed confessed that the US economy may not recover for five or six years. . . .
The Fed minutes warned of “significant downside risks” and a possible slide into deflation, an admission that zero interest rates, $1.75 trillion of [quantitative easing], and a fiscal deficit above 10 [percent] of GDP have so far failed to lift the economy out of a structural slump.

In other words, all those trillions of dollars of neo-Keynesian fiscal stimulus and monetary interventions have accomplished nothing, in terms of real economic growth.

“Aggregate demand! Aggregate demand!”

Idiots.

UPDATE II: A belated welcome to Instapundit readers. You can tell I’m busy off-blog when it takes me two hours to notice a ‘Lanche.

Category: Economics

Comments

104 Responses to “Ezra Klein Admits: ‘It Won’t Work’”

  1. Joe
    July 16th, 2010 @ 4:58 pm

    That Stacy McCain is just as smart as that German octopus who picked FIFA winners.

    Although Stacy is probably not as tasty stewed and seasoned with butter or served as sushi/sashimi.

  2. Joe
    July 16th, 2010 @ 4:58 pm

    That Stacy McCain is just as smart as that German octopus who picked FIFA winners.

    Although Stacy is probably not as tasty stewed and seasoned with butter or served as sushi/sashimi.

  3. Joe
    July 16th, 2010 @ 12:58 pm

    That Stacy McCain is just as smart as that German octopus who picked FIFA winners.

    Although Stacy is probably not as tasty stewed and seasoned with butter or served as sushi/sashimi.

  4. TR Sterling
    July 16th, 2010 @ 4:59 pm

    Stacy,
    Change the blog headling to “Other sage and econonics expert recalls predictions”
    Nice to see a replay of your prescient remarks.
    -TR

  5. TR Sterling
    July 16th, 2010 @ 12:59 pm

    Stacy,
    Change the blog headling to “Other sage and econonics expert recalls predictions”
    Nice to see a replay of your prescient remarks.
    -TR

  6. Robert Stacy McCain
    July 16th, 2010 @ 5:13 pm

    Nice to see a replay of your prescient remarks.

    I hate to keep repeating myself, but it’s just frustrating that, 30 years after the Keynesian debacle, these idiots still can’t seem to recognize the glaring flaw in their theory:

    1. Printing money doesn’t create new wealth, or else counterfeiting would be legal.

    2. Borrowing money doesn’t create new wealth, or I could go to the bank, take out a $1 billion loan and become an instant Rockefeller.

    3. The fiscal and monetary manipulations of Keynesian interventionism therefore do not create wealth.

    You don’t have to be a genius to understand this. In fact, I think the popularity of Keynesian theory among “intellectuals” is largely due to its Rube Goldberg complexity, which allows intellectuals to feel superior in grasping the nuance that supposedly unsophisticated ordinary people can’t see.

  7. Robert Stacy McCain
    July 16th, 2010 @ 5:13 pm

    Nice to see a replay of your prescient remarks.

    I hate to keep repeating myself, but it’s just frustrating that, 30 years after the Keynesian debacle, these idiots still can’t seem to recognize the glaring flaw in their theory:

    1. Printing money doesn’t create new wealth, or else counterfeiting would be legal.

    2. Borrowing money doesn’t create new wealth, or I could go to the bank, take out a $1 billion loan and become an instant Rockefeller.

    3. The fiscal and monetary manipulations of Keynesian interventionism therefore do not create wealth.

    You don’t have to be a genius to understand this. In fact, I think the popularity of Keynesian theory among “intellectuals” is largely due to its Rube Goldberg complexity, which allows intellectuals to feel superior in grasping the nuance that supposedly unsophisticated ordinary people can’t see.

  8. Robert Stacy McCain
    July 16th, 2010 @ 1:13 pm

    Nice to see a replay of your prescient remarks.

    I hate to keep repeating myself, but it’s just frustrating that, 30 years after the Keynesian debacle, these idiots still can’t seem to recognize the glaring flaw in their theory:

    1. Printing money doesn’t create new wealth, or else counterfeiting would be legal.

    2. Borrowing money doesn’t create new wealth, or I could go to the bank, take out a $1 billion loan and become an instant Rockefeller.

    3. The fiscal and monetary manipulations of Keynesian interventionism therefore do not create wealth.

    You don’t have to be a genius to understand this. In fact, I think the popularity of Keynesian theory among “intellectuals” is largely due to its Rube Goldberg complexity, which allows intellectuals to feel superior in grasping the nuance that supposedly unsophisticated ordinary people can’t see.

  9. Robert Stacy McCain
    July 16th, 2010 @ 5:17 pm

    BTW, who told Ezra Klein that 5% unemployment is “normalcy”? A relative pinnacle of national prosperity, with ultra-low unemployment, is not “normal” in any historical sense. The general lot of mankind has been poverty and endless toil, a condition ameliorated only in a few fortunate nations that embraced free-market capitalism and the Rule of Law.

  10. Robert Stacy McCain
    July 16th, 2010 @ 5:17 pm

    BTW, who told Ezra Klein that 5% unemployment is “normalcy”? A relative pinnacle of national prosperity, with ultra-low unemployment, is not “normal” in any historical sense. The general lot of mankind has been poverty and endless toil, a condition ameliorated only in a few fortunate nations that embraced free-market capitalism and the Rule of Law.

  11. Robert Stacy McCain
    July 16th, 2010 @ 1:17 pm

    BTW, who told Ezra Klein that 5% unemployment is “normalcy”? A relative pinnacle of national prosperity, with ultra-low unemployment, is not “normal” in any historical sense. The general lot of mankind has been poverty and endless toil, a condition ameliorated only in a few fortunate nations that embraced free-market capitalism and the Rule of Law.

  12. just a conservative girl
    July 16th, 2010 @ 7:05 pm

    Well, sadly, being right about this is not a good thing.

  13. just a conservative girl
    July 16th, 2010 @ 3:05 pm

    Well, sadly, being right about this is not a good thing.

  14. Adobe Walls
    July 16th, 2010 @ 7:13 pm

    Gigi got fired already?

  15. Adobe Walls
    July 16th, 2010 @ 7:13 pm

    Gigi got fired already?

  16. Adobe Walls
    July 16th, 2010 @ 7:13 pm

    Gigi got fired already?

  17. Adobe Walls
    July 16th, 2010 @ 7:13 pm

    Gigi got fired already?

  18. Adobe Walls
    July 16th, 2010 @ 3:13 pm

    Gigi got fired already?

  19. Mikey NTH
    July 16th, 2010 @ 7:20 pm

    It did accomplish something! It provided a vehicle for paying off supporters!

  20. Mikey NTH
    July 16th, 2010 @ 7:20 pm

    It did accomplish something! It provided a vehicle for paying off supporters!

  21. Mikey NTH
    July 16th, 2010 @ 3:20 pm

    It did accomplish something! It provided a vehicle for paying off supporters!

  22. Patrick in Detroit
    July 16th, 2010 @ 7:30 pm

    You wanna Cookie?

    Hehe…

    Being right, on a point, does suck at times…

    🙁

    -Pat

  23. Patrick in Detroit
    July 16th, 2010 @ 3:30 pm

    You wanna Cookie?

    Hehe…

    Being right, on a point, does suck at times…

    🙁

    -Pat

  24. goddessoftheclassroom
    July 16th, 2010 @ 7:53 pm

    You understand why Cassandra went mad?

  25. goddessoftheclassroom
    July 16th, 2010 @ 3:53 pm

    You understand why Cassandra went mad?

  26. kansas
    July 16th, 2010 @ 7:55 pm

    This new banking reform bill should just about kill off any chance at recovery.

  27. kansas
    July 16th, 2010 @ 7:55 pm

    This new banking reform bill should just about kill off any chance at recovery.

  28. kansas
    July 16th, 2010 @ 7:55 pm

    This new banking reform bill should just about kill off any chance at recovery.

  29. kansas
    July 16th, 2010 @ 3:55 pm

    This new banking reform bill should just about kill off any chance at recovery.

  30. Adobe Walls
    July 16th, 2010 @ 7:58 pm

    The new reform bill is almost surely an Economic Final Solution.

  31. Adobe Walls
    July 16th, 2010 @ 7:58 pm

    The new reform bill is almost surely an Economic Final Solution.

  32. Adobe Walls
    July 16th, 2010 @ 3:58 pm

    The new reform bill is almost surely an Economic Final Solution.

  33. Charles Johnson
    July 16th, 2010 @ 8:04 pm

    Oh off topic, but the subject of how much better off is Canada is always worth exploring.

    I see a new Mark Steyn story coming on this issue!

  34. Charles Johnson
    July 16th, 2010 @ 4:04 pm

    Oh off topic, but the subject of how much better off is Canada is always worth exploring.

    I see a new Mark Steyn story coming on this issue!

  35. Charles Johnson
    July 16th, 2010 @ 8:05 pm

    Now that link above is an enlightened approach to child care. Not some crazy Geller argument.

  36. Charles Johnson
    July 16th, 2010 @ 4:05 pm

    Now that link above is an enlightened approach to child care. Not some crazy Geller argument.

  37. Red
    July 16th, 2010 @ 9:32 pm

    Well this is a helluva I-told-you-so. Being right’s a bitch. And right.

  38. Red
    July 16th, 2010 @ 5:32 pm

    Well this is a helluva I-told-you-so. Being right’s a bitch. And right.

  39. Obi's Sister
    July 16th, 2010 @ 9:39 pm

    Oh Great Carnack!

  40. RandyB
    July 16th, 2010 @ 9:39 pm

    It won’t be quite that bad.

    You have to factor in that it’s less than 12.5 years before we have another census.

  41. Obi's Sister
    July 16th, 2010 @ 5:39 pm

    Oh Great Carnack!

  42. RandyB
    July 16th, 2010 @ 5:39 pm

    It won’t be quite that bad.

    You have to factor in that it’s less than 12.5 years before we have another census.

  43. gullyborg
    July 16th, 2010 @ 9:40 pm

    No, no, no. It’s all Bush’s fault. Think how much worse everything would be now if we didn’t have the sagacious Obama and progressive stimulus to counter the Bush recession. If we had McCain in office continuing the Bush policies, then the Bush economy would be even higher Bush unemployment and even lower Bush Dow Jones. Bush.

  44. gullyborg
    July 16th, 2010 @ 5:40 pm

    No, no, no. It’s all Bush’s fault. Think how much worse everything would be now if we didn’t have the sagacious Obama and progressive stimulus to counter the Bush recession. If we had McCain in office continuing the Bush policies, then the Bush economy would be even higher Bush unemployment and even lower Bush Dow Jones. Bush.

  45. Mwalimu Daudi
    July 16th, 2010 @ 9:44 pm

    Pointing out that Keynesian economics is a failure is, of course, racist.

  46. Henry Bowman
    July 16th, 2010 @ 9:44 pm

    Mr. McCain,

    Let’s be truthful about this: counterfeiting is completely legal in the U.S. It’s what the Federal Reserve does!

  47. Mwalimu Daudi
    July 16th, 2010 @ 5:44 pm

    Pointing out that Keynesian economics is a failure is, of course, racist.

  48. Henry Bowman
    July 16th, 2010 @ 5:44 pm

    Mr. McCain,

    Let’s be truthful about this: counterfeiting is completely legal in the U.S. It’s what the Federal Reserve does!

  49. Marty
    July 16th, 2010 @ 9:52 pm

    The left’s embrace of Keynes was never about the economics, which they haven’t the knowledge, intelligence, or willingness to make the effort to understand. All they care about is that an over-simple reading of his General Theory justifies what they want to do, anyway, which is grow the government.

    You can’t use logic and facts to argue someone out of a position they didn’t use logic and facts to get into.

    that’s why the libs never learn.

  50. templar knight
    July 16th, 2010 @ 9:52 pm

    Now..now..give it a chance, folks. It hasn’t quite been long enough to tell whether the plan will work, and I’m with the President on this one. A few more trillion is sure to set everything in order, and now that He’s stopped that silly blowout in the Gulf, He will have time to call the Fed and order some more money printing….uh…quantitative easing…yeah, that’s it. Now what were yall saying?

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