[Ed. 27] In this edition → → → → →

Obamanomics: no fix for America’s panes
Keynesian economic theory losses to reality

WASHINGTON, DC—Prior to last Friday’s numbers dump, the chief theoretician on Team Obama, Christina Romer announced her retirement from public service to rejoin the private sector at…..
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Obamacare on the ballot
Missouri voters give the administration a preview of what’s to come

MISSOURI—The Show Me State voters are showing the Obama administration just what they think of health care reform: it stinks. Two out of three voters went to the polls on August 2nd and…..
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Let the taxpayers eat cake
The First Lady enjoys an extravagant trip while Americans face more bad economic news

SPAIN—Remember Mr. Obama telling Americans not to go, ''blow a bunch of cash in Vegas''; well, Michelle Obama’s trip to Spain with daughter Sasha will probably exceed the cost of a few…..
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When exactly does “Recovery Summer” begin?
The administration is telling us things are getting better but they’re not

WASHINGTON, DC—“Recovery Summer” seems to be out of synch with the calendar. According to long held belief, summer is wedged between spring and fall, occurring from June through…..
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Obama losing war support
Americans are losing confidence in the ability to win in Afghanistan

KABUL, AFGHANISTAN—With the deadliest month in Afghanistan on record, more Americans are expressing concern the United States and its allies cannot win the war. USA Today reports…..
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Chelsea Clinton’s day
Estimates for her wedding range upward of $2 to $3 million—so what?

RHINEBECK, NY—Former first daughter Chelsea Clinton wed her beau, Marc Mezvinsky on July 31st. The press couldn’t get enough of the event, the Obama and Gore snub, and the cost…..
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Obamanomics: no fix for America’s panes Keynesian economic theory losses to reality

WASHINGTON, DC—Prior to last Friday’s numbers dump, the chief theoretician on Team Obama, Christina Romer, announced her retirement from public service to rejoin the private sector at Berkley where theory reigns supreme, uninterrupted by pesky real world circumstances.

The Washington Examiner and Larry Kudlow both wrote pieces yesterday proclaiming precisely this, citing a slew of bad economic numbers: the 9.5 percent jobless rate, anemic 2.4 percent growth, the addition of more discouraged workers, and a weak outlook for the next three quarters.

How could this be? Ms. Romer’s grand thesis on the miraculousness of the stimulus boasted holding unemployment under 8 percent and growing the economy at an astounding rate by injecting massive government money into the economy. Yet, America is in the exact same position Ms. Romer said it would be in if the stimulus wasn’t passed.

This is the broken window fallacy on full display: the theory the smashes Keynesian window dressing. Simply put, it states that government spending improves the economy by creating jobs. There’s only one wrinkle in the theory—government doesn’t produce anything that makes money, so the money has to come from taxpayers. In other words, the government has to confiscate money from the private sector to inject money into the private sector.

The Soviet Union tried this. Japan has tried this. Cuba has tried this.  And America has tried this about three times. Theory: 0, Reality: 6.

-- Owen E. Richason IV

Chief Editor, Killswitch Politick

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