Media elites like Brit Hume spreading economic myths on the tube
I am getting tire of the press reporting economic fallacies. One of them is that it is bad for Greece to lower the minimum wage law, it is not. Price floors create surpluses. Economics 101.
The second is that if the economy is bad you do not want to spend less money at the federal level. Brit Hume on Fox News Special Report (2-13-2012) with Bret Baier explaining to viewers that it would be bad if the federal government cut spending with a fragile economy, but spending more could be risky. ?????
How is economic knowledge ever suppose to advance when “conservative” television commentators give viewers the same spin as “liberal” commentators? I could turn on CNBC and get the Keynesian economic spin, or Fox News, same crap.
For the record government spending is not beneficial for the economy. Government does not create anything. Government takes resources from others who worked for those resources and redistributes the resources. This causes malinvestment of resources in favor of the government, Wall Street, and Federal Reserve. Private individuals and companies who have their wealth confiscated by government are hurt. The overall net effect is negative GDP growth of 0.5% to 1% for every 10% of the GDP government consumes.
There is a reason the economy is functioning at 1990s levels, government has grown from 18.2% of the GDP to 25.3% of the GDP. Keynesian economics does not work, it never did, it never has.
Keynesian economics has always been a fancy lie based on the principals of John Law, the creator of the Mississippi financial bubble and bust of 1715-20. Its a bunch of mambo jumbo designed to praise government and central banks, baffle the public, and enrich the elites with access to government. The sooner reporters like Brit Hume realize its all a fairy tale the better off the American public will be.
The text books need to re-write the GDP formula from Y = C + I + G + NX to Y = C + I – G + lNXl.
Until that day comes we will continue to be bombarded with economic hog wash from economic illiterate reporters and “economists.”
For the record the proper way to fight a recession is to shrink government, lower the minimum wage, and get out of the way. The same method Warren G. Harding used to end the 1920-21 recession, quite successfully. Unemployment dropped from 11.7% to 2.4% in two years.