Government Pump-Priming Never Works

Government pump-priming never works.

Liberals always refer to the opinion of John Maynard Keynes but he was not decisive as to methods of producing prosperity, as are those who claim to be his followers.

Some examples of the left's misuse of his admonitions:

..Prosperity depends on investment in industry. That produces jobs and income.
..Lower interest rates do not help as the Great Depression showed in the 1930s.
..Lots of bank reserves and deposits don’t help if the banks are afraid to make loans so industry can invest.
..Large public works do not create meaningful jobs.

To elaborate on a portion of our recent emphasis on billions in certain areas as a depression stimulus: A pick and shovel job is meaningless to women and skilled workers who make up such a large part of the work force. This did not help in the 1930’s. It certainly is of no use today.

And government jobs are a crutch which create poor psychology. It does just the opposite if we must overcome fear and gloom to get over a recession or a depression.