Tuesday, August 16, 2011

The illogicality of Keynesian Economics and the logicality of small government and reduced government spending and the positive effects on the economy

Here are two videos concerning Keynesian Economics and the relationship between smaller government and reduced government spending and the positives effects these two items have on a nation's economy.

The first video shows the illogicality of Keynesian economics, AKA governments borrowing money when the economy is down and pumping that borrowed money into the economy in the form of stimulus packages, hoping the sight of money will get people spending again. No wonder we live in such a "spend-happy-no-matter-the-situation" environment all over the world, and particularly in the US; our government(s) promote it.


The second video shows why government spending does not boost the economy in the long run," and looks at "some empirical evidence about economic performance and the size of the public sector."


These two videos were taken from a posting on www.cato-at-liberty.org, posted by Cato Institute member, Daniel Mitchell.