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View Diary: Obama IS a Keynesian. Congress Isn't. (52 comments)

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  •  Funny you make the case he's a Keyensian when (3+ / 0-)
    Recommended by:
    supercereal, cfm, Richard Cranium

    all you need to do is look at who he's appointed as economic advisers and how he's behaved in the last 2+ years to know he couldn't possibly be.  Blaming the Congress doesn't change Obama's behavior and choices.

    The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. Bertrand Russell

    by accumbens on Sun Aug 14, 2011 at 07:40:02 AM PDT

    •  Exactly. Consider his advisors. (0+ / 0-)

      If there is actually an economic theory that Obama's following, it's definitely not Keynes.  He (and his team) are much closer to Friedman, Chicago School-style.

      Tea Party manifesto: We're resigned to our collective fate because we don't want no stinkin' collective future with the likes of you

      by Richard Cranium on Sun Aug 14, 2011 at 08:35:47 AM PDT

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      •  And you think Friedman would have been in favor of (0+ / 0-)

        the stimulus and Dodd-Frank? I don't think so.  Why do they bitch so much about it and threaten repeal?

        You can't scare me, I'm sticking to the Union - Woody Guthrie

        by sewaneepat on Sun Aug 14, 2011 at 09:02:58 AM PDT

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        •  Look at what the 'stimulus' consisted of (0+ / 0-)

          A lot of tax cuts, and funding of projects was totally inadequate for the necessary level of job creation.  The Friedman disciples were pragmatic enough to realize that there had to be just a dollop of sweetener in order to act as a trojan horse for the tax cuts.

          Absolutely Friedman-esque.

          Tea Party manifesto: We're resigned to our collective fate because we don't want no stinkin' collective future with the likes of you

          by Richard Cranium on Sun Aug 14, 2011 at 09:48:57 AM PDT

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          •  Yes, let's look at what the stimulus consisted of. (1+ / 0-)
            Recommended by:
            Fogiv

            Spending of about $550 billion, which I can agree should have been more.

            Tax credits and reductions-
            $400 per worker or $800 per couple for 2009 and 2010 - with phase out beginning at $75,000 single and $150,000 joint so this was for low income and middle income people. This amounted to about $145 billion.

            Raised floor of AMT to $70,950 for 2009.

            Expanded child tax credit for low income families. (Was that you had to make $12,550 to receive any of the credit; changed to only $3000 to take the credit.

            $4.7 billion to increase the earned income credit which is for low income families.

            $13 Billion for expanded college credit  or tuition and expenses. Phased out for couples making over $160,000.

            Home buyers tax credit of $8000 with repayment provision repealed for 2009 if house held for 3 years.

            $4.3 billion for home energy efficiency.

            $4.7 billion to exclude from taxation the first $2400 of unemployment benefits from income tax for 2009.

            $5 billion for speeded up depreciation for business for equipment.

            Companies whose revenue is under $5 million could offset losses against profits of the last 5 years instead of 2 years.

            $13 billion to extend tax credits for renewable energy production to 2014.

            Increased taxes on merged banks by $7 billion.

            $2 billion for deduction of sales taxes on automobiles and phased out on incomes above $250,000.

            There were also subsidies for locally issued bonds on school buildings, teacher training, economic development and infrastructure, and a delay of withholding 3% on government contractors, but I can't tell which provision (House or Senate or neither) made it to the conference committee.

            That is the total of the tax part. And it is all for small businesses, lower and middle income families, and renewable energy production. Every single tax cut there is classic Keynesian.

            You can't scare me, I'm sticking to the Union - Woody Guthrie

            by sewaneepat on Sun Aug 14, 2011 at 10:42:29 AM PDT

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          •  The tax cuts WERE Keynesian. Read Keynes. (1+ / 0-)
            Recommended by:
            Fogiv

            He was quite explicit in his argument that it didn't matter how the government jacked up the deficit, as long as it kept more money in circulation by spending a lot more than it taxed.

            Noting that "only" 2/3 of the package was taxes is irrelevant to the question of Keynesianism.

            Noting that it was too small is equally irrelevant.  George Bush sent an army that was too small into Iraq; does that make him less of a neoconservative imperialist?

            Art is the handmaid of human good.

            by joe from Lowell on Sun Aug 14, 2011 at 01:57:12 PM PDT

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      •  All of his advisors favored stimulus, all of them. (1+ / 0-)
        Recommended by:
        Fogiv

        Name a single economic advisor in this administration who opposed the largest stimulus bill in American history.

        One name.  Just one.

        Art is the handmaid of human good.

        by joe from Lowell on Sun Aug 14, 2011 at 01:55:03 PM PDT

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    •  You mean the guys who put together the largest.... (1+ / 0-)
      Recommended by:
      Fogiv

      package of Keynesian stimulus in American history?

      You're right, we should look at how he behaved: he came into office, with ultra-high approval numbers, and put his entire legislative agenda on hold - almost losing Health Care Reform in the process - in order to push through a massive package of Keynesian stimulus.

      Talk his cheap.  He's demonstrated his Keynesian bona fides in spades.  He made it is his first and highest priority, first thing upon assuming office.

      Art is the handmaid of human good.

      by joe from Lowell on Sun Aug 14, 2011 at 01:53:55 PM PDT

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