And of course, Perma-US-Liberal-Democrat-phile like other Star writers. But I digress.
Via The Star 3 Oct 2011:
Euro fallout is bad news for world economy
By Martin Khor
Meanwhile, the US has its own budget deficit tug-of-war between the President and Congress and between Republicans and Democrats.
What this means is that Europe and the US are not able to make use of the policies (massive increases in government spending, interest rate cuts and pumping of money into the economy) that pulled them quickly out from the last recession.
In the fantasies of Martin Khor and other Keynesians (*cough* Paul ‘Enron Consultant‘ Krugman *cough*), the Stimulus ‘saved or created’ countless jobs and rescued the economy temporarily. In fact, if the Stimulus had been bigger, the economy would be booming now!
The Hoover Institution’s John Cogan and John Taylor found zero effect one way or another from the stimulus. And a more recent study by Timothy Conley of the University of Western Ontario and Bill Dupor of Ohio State actually found a negative correlation between federal stimulus spending and private-sector job growth. That suggests more spending actually kills jobs.
The striking observation is that after correcting for the higher starting point, the actual performance of the economy is almost exactly what Romer and Bernstein said would happen if we had done nothing, rather than passing the $800 billion package.
Many more graphs along the same lines at here.
Oh, and his precious Liberals also caused that 2008 recession.
PS. Too good to leave out, via AoSHQ:
A few months ago the vast majority of business economists mocked concerns about a ”double dip,” a second leg to the downturn. But there were a few dogged iconoclasts out there, most notably Stephen Roach at Morgan Stanley. As I’ve repeatedly said in this column, the arguments of the double-dippers made a lot of sense. And their story now looks more plausible than ever.
The basic point is that the recession of 2001 wasn’t a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.
Hey, go back to that link about being an Enron Consultant. As Dogbert from the Dilbert comic strip put it, CONSULT = CON + INSULT