Futile Stimulus Actions

Why haven’t government stimulus programs worked? We know it has not produced needed jobs.

                           

It has also done havoc to interest rates because of meddling. When left alone, interest rates usually adjust to supply and demand forces and adjust economic events. However, when government imposes stimulus proposals to raise credit and lift the economy, the system is disturbed and distorted.

                       

This unbalances the economy and does the exact opposite of what has been intended.

                       

Ludwig von Mises wrote fully about the phenomenon in the 1920s. However, the fashionable economist during the 1930s recession was John Maynard Keynes. He became the poster child of that recovery movement.

                       

The Keynes government pump-priming thesis that employed prolonged stimuli actually deepened, and helped induce the Great Depression. Nevertheless, it is the premise of the administration’s failed current policy.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)