David Kirkpatrick

July 9, 2010

Hayek v. Keynes

Filed under: Business, Politics — Tags: , , , , — David Kirkpatrick @ 1:26 pm

From today’s Cato dispatch and hot from the inbox:

The Great Debate Is Still Hayek vs. Keynes What is most likely to pull the economy out of the Great Recession: Keynesian reliance on government spending or Hayek’s solution of a reinvigorated private sector and global trading system? The debate today mirrors the one that occurred during the Great Depression, as Cato Senior Fellow Gerald P. O’Driscoll Jr. writes in the Wall Street Journal:

Is all spending equally productive, or should government policies aim to stimulate private investment? If the latter, then Mr. Obama is following in FDR’s footsteps and impeding recovery. He does so by demonizing business and creating regime uncertainty through new regulations and costly programs. In this he follows neither Hayek nor Keynes, since creating a lack of confidence is considered destructive by both.

June 15, 2008

Ross and his charts

Filed under: et.al., Politics — Tags: , , , , , , , — David Kirkpatrick @ 11:54 pm

Ross Perot, the founder of EDS and one-time presidential candidate who pretty much put Bill Clinton into the White House, is known (and parodied) for his love of charts. To that end he has an interesting website full of various charts — Perotcharts.com.

Two particularly outline the out-of-control budget deficit, and the GOP’s complicity in the situation.

Here’s one on surpluses and deficits over the last 40 years:

Federal Surpluses and Deficits 1968 - 2007

This next chart and analysis covers the national debt for the same time period. Notice how the debt fell only during Clinton’s time in office. It’s distressing to me how fiscally irresponsible the GOP has become. There’s absolutely nothing conservative about the fiscal policy this nation has operated under the last seven-plus years.

The Growing National Debt Debt Held by the Public 1968 - 2007

But wait a minute! All of the so-called “debt clocks” show that the national debt is now in excess of $9 trillion. Where is the $4 trillion discrepancy? Answer: See the next two charts (Growing National Debt: Intragovernmental Holdings and The Growing National Debt: Combined).

This is the cumulative amount of money that the government has borrowed from outside sources to meet its obligations during the years that it runs deficits. Debt Held by the Public includes domestic buyers, such as mutual funds, state and local governments, Federal Reserve banks, commercial banks, insurance companies, and individuals, as well as private foreign entities and central banks of foreign countries. Of the $5.1 trillion in outstanding public debt at the end of 2007, domestic investors owned 55 percent ($2.8 trillion) and foreign investors held 45 percent ($2.2 trillion). When the government runs surpluses, the debt gets paid down as can be seen from the trough in the late 1990s.

(Hat tip: the Daily Dish)