Denver Post editorial: Enough with the Keynesianism, already

posted at 3:00 pm on August 28, 2010 by Ed Morrissey

The Denver Post editorial board isn’t exactly known for its rock-ribbed conservatism, but today, they have joined the small-government bandwagon.  The editorial calls for an end to Keynesian interventions that have clearly failed, and instead an effort to “restructure government to something we can afford.”  In Colorado, that call may mean trouble for Democrats looking to return to Washington, as their leadership so far is offering nothing more than a double down on the very policies that the Post blasts in its editorial today:

It looks like the Keynesian theory of infusing massive amounts of government cash into the economy has fizzled. And while many other factors also explain the lack of economic energy, the bottom line is that nearly everyone — from consumers to business owners to government decision-makers — faces tremendous unknowns.

Worries about maintaining jobs and salaries stymie consumers. Businesses are holding back money. Economists also say that likely changes to tax laws and new regulatory environments are having a chilling effect.

And that uncertainty continues to hobble our consumer-generated economy.

The news is dire and the message — we hope — is simple: We need clear-eyed action going forward. Kicking around political footballs when there is a chance the country could slip back into recession cannot be tolerated.

The Keynesian theory has fizzled, indeed — just as it did when tried in the 1930s and again in the 1970s.  Government seizure of capital for redistribution makes less efficient use of the capital than the market does, for all of the obvious reasons, and a few less obvious.  Among the latter, private capital works more quickly; the Porkulus funds took far too long to have any impact, as critics warned when Congress and Barack Obama demanded almost $800 billion in borrowed money for it.

But it’s not just the Keynesianism that is causing the problem, and the Post strongly hints at the issue.  Under Obama and a Democrat-controlled Congress, regulation has exploded, much of it ambiguous and arbitrary.  ObamaCare is the biggest example; the bill contains numerous references to rules that “the Secretary shall determine,” leaving businesses without any firm path to plan for future expansion.  Cap-and-trade and Card Check, which are still sitting on deck, will introduce not just higher costs but even more ambiguities and uncertainties into the mix, and the result will be capital flight, recession, and perhaps worse.

This election, the Post concludes, is a referendum on the economy.  It should also be a referendum on federal arrogance and executive competence.


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“Here’s how we fill up the swimming pool. You take a bucket of water from the deep end and pour it into the shallow end, and viola! That’s how you raise the water level in the swimming pool.” — Obama

John the Libertarian on August 28, 2010 at 3:04 PM

The problem with the economy isn’t economic, it’s political.

Skandia Recluse on August 28, 2010 at 3:06 PM

In a household, when children are put in charge, disaster follows. Now it’s been proved that the principle also works on the national scale.

Cicero43 on August 28, 2010 at 3:08 PM

This election, the Post concludes, is a referendum on the economy. It should also be a referendum on federal arrogance and executive competence.

Dern tootin’!

Weight of Glory on August 28, 2010 at 3:09 PM

“Businesses are holding back money.”

And that uncertainty continues to hobble our consumer-generated economy.

I appreciate the Post’s intentions here but they really need to get some knowledge if they’re going to help do anything more than incoherently yell “We’re trapped like rats!”

Dusty on August 28, 2010 at 7:17 PM

It’s a miracle!

Cindy Munford on August 28, 2010 at 7:18 PM

Racists!

29Victor on August 28, 2010 at 7:21 PM

I can see November from my house, the carnage looks pretty grim for the Dems.

JimK on August 28, 2010 at 7:22 PM

I didn’t know the Klan operated in Denver.

Sharke on August 28, 2010 at 7:23 PM

So now, anyone who is willing to analyze the Administration’s policies, is coming to the same conclusion: incompetence. I think this is a bit generous. I believe it was deliberate, but that’s me. I cannot prove Cloward-Pevins is being applied, but it’s a darned coincidence that Obama comes from Alinskiland, his advisers all have strong anti-American credentials and a hatred for capitalism, etc. History may tell a more accurate tale…eventually.

stonemeister on August 28, 2010 at 7:25 PM

Incompetence or malfeasance; the result is the same.

BTW, somebody should check the time zone on this place; my watch has 4:06 pm EDT.

steveegg on August 28, 2010 at 8:07 PM

Government seizure of capital for redistribution makes less efficient use of the capital than the market does.

This is not a true statement.

PrezHussein on August 28, 2010 at 8:13 PM

Waste of time and paper even to construct the bills the way that demorats have so far.

All of them could have been a single page saying: “Everything will be as the pertinent secretary shall determine”, that’s what the libs really want anyway.

Bishop on August 28, 2010 at 8:13 PM

“Here’s how we fill up the swimming pool. You take a bucket of water from the deep end and pour it into the shallow end, and viola! That’s how you raise the water level in the swimming pool.” — Obama

John the Libertarian on August 28, 2010 at 3:04 PM

Hey . I never thought of that! Wait a minute while I try it.
Crap, that didn’t work. Just another lie from obama !!!

BruceB on August 28, 2010 at 8:15 PM

stonemeister on August 28, 2010 at 7:25 PM

I agree that this is deliberate. The end game is nothing short of total government control. It’s all part of the Dem’s 3-step plan to tax, spend and blame Bush.

jdawg on August 28, 2010 at 8:16 PM

This is the same Denver Post that endorsed BHO in 2008 saying:

“He’s the right man to lead America back to prosperity”

This is the same Denver Post that endorsed five Democrats out of the seven congressional seats and liberal Mark Udall for open senate seat.

This is the same Denver Post that is in the tank for John Hickenlooper (the current liberal Denver mayor) for governor.

I think these boys are a little bit late to the dance.

Zardoz on August 28, 2010 at 8:25 PM

Crap, that didn’t work

You just need a bigger bucket

tommyboy on August 28, 2010 at 4:32 PM

show us the REAL birth certificate, and we’ll shut up.

RealMc on August 28, 2010 at 4:34 PM

BTW, somebody should check the time zone on this place; my watch has 4:06 pm EDT.

steveegg on August 28, 2010 at 8:07 PM

Whoa! You’re right! I also had weirdness with clicking on this story, and a blank page came up…. then tried another, same thing. Had to close the program and reopen then it worked.

tru2tx on August 28, 2010 at 4:36 PM

For those still considering voting for “conservative” Democrats, I ardently urge you to “Beware of Morphy’s Law.”:

MORPHY’S LAW: All progressive politicians who want to successfully run for office can only reveal their true opinions after being elected.

Dr. Charles G. Waugh on August 28, 2010 at 4:40 PM

Economists also say that likely changes to tax laws and new regulatory environments are having a chilling effect.

Nutshell. All part of Obama’s War on Poverty. And yet Obama walks around with an Alfred E. Newman attitude, “What me worry?”

BuckeyeSam on August 28, 2010 at 4:40 PM

“Here’s how we fill up the swimming pool. You take a bucket of water from the deep end and pour it into the shallow end, and viola! That’s how you raise the water level in the swimming pool.” — Obama

John the Libertarian on August 28, 2010 at 3:04 PM

You forgot the part where you empty 40% of the bucket into the govt wading pool before you dump the rest into the shallow end.

itsnotaboutme on August 28, 2010 at 4:44 PM

As a resident of the Denver metro area,
I say this. I thought the post getting a clue, was a sign of the Apocalypse.

Slowburn on August 28, 2010 at 4:44 PM

Nobody still believes in Keynesianism, most especially Øbama. For the 0-bots, Keynesianism is just a convenient excuse.

petefrt on August 28, 2010 at 4:51 PM

The Denver Post editorial board isn’t exactly known for its rock-ribbed conservatism, but today, they have joined the smallER-government bandwagon.

This does not mean they’ve jumped onto the bandwagon. It just means that they can no longer ignore the repeated beatings the collective American populace is taking from D.C.

A wish for smaller government does not a conservative automatically make.

gryphon202 on August 28, 2010 at 4:54 PM

The news is dire and the message — we hope — is simple: We need clear-eyed action going forward. Kicking around political footballs when there is a chance the country could slip back into recession cannot be tolerated.

Sigh. We were not in a recession; we were and are in a depression. The refusal of the mainstream media to acknowledge this frustrates me to no end.

Theophile on August 28, 2010 at 4:57 PM

This does not mean they’ve jumped onto the bandwagon.

gryphon202 on August 28, 2010 at 4:54 PM

But it does mean they’ve jumped off the “Bundwagon.”

Dr. Charles G. Waugh on August 28, 2010 at 5:00 PM

Krugman is sure to dash off a well written critique of this editorial, as soon as he worries his binkie a bit.

GnuBreed on August 28, 2010 at 5:00 PM

Sigh. We were not in a recession; we were and are in a depression.

Theophile on August 28, 2010 at 4:57 PM

I’ve been in a deep “depression” since the November 2008 elections.

Dr. Charles G. Waugh on August 28, 2010 at 5:02 PM

. All part of Obama’s War on Poverty. And yet Obama walks around with an Alfred E. Newman attitude, “What me worry?”

BuckeyeSam on August 28, 2010 at 4:40 PM

Maybe it really is a war FOR poverty? I kid but sometimes you wonder if but for a second.

CWforFreedom on August 28, 2010 at 5:05 PM

Yea, it’s back and I did get my comment in.

This is not a true statement.

PrezHussein on August 28, 2010 at 8:13 PM

Why? Because there is an exception to the rule?

Dusty on August 28, 2010 at 5:06 PM

The debate in Washington also will be about whether to extend President Bush’s tax cuts.
We don’t know that extending the cuts will help much in the short term, but we do know that adding uncertainty to the already fragile situation is irresponsible.

Don’t get too excited… Obama is not mentioned in the article, but Bush is. And this is lame… “A referendum on the economy”
A better way of condensing the article would have included a slap directly at the Obama, Pelosie, Reid… But vague wrong direction piece, with non support for extension of the Bush tax cuts is a weak ’oh what to do’, when what we need is “Obama’s Policies are Killing the Country” headline.

RalphyBoy on August 28, 2010 at 5:07 PM

Ironically, they and many others still adhere to the Keynesian myth that consumer spending is the major share of the economy. This is a capital-intensive economy. Consumption is not a majority share of the spending in the economy; productive expenditures on equipment and wages are and that is the very part so hobbled by increased taxes and regulation.

AshleyTKing on August 28, 2010 at 5:07 PM

Government seizure of capital for redistribution makes less efficient use of the capital than the market does

Sure, but it sues does make me feel all gooey inside.

Vote Democrat! Who cares if it works, you’ll feel like you care!

mankai on August 28, 2010 at 5:13 PM

Government seizure of capital for redistribution makes less efficient use of the capital

No, it destroys capital.

AshleyTKing on August 28, 2010 at 5:34 PM

Finally, got kicked off a while ago and could not log back in. Have they fixed what ails them yet? Hopefully I can post this time around.

bluemarlin on August 28, 2010 at 5:38 PM

“Here’s how we fill up the swimming pool. You take a bucket of water from the deep end and pour it into the shallow end, and viola! That’s how you raise the water level in the swimming pool.” — Obama

John the Libertarian on August 28, 2010 at 3:04 PM

If I were you, I’d be careful. Otherwise Obama might choose you to be our new “Fubar” Czar.

Dr. Charles G. Waugh on August 28, 2010 at 5:47 PM

“Here’s how we fill up the swimming pool. You take a bucket of water from the deep end and pour it into the shallow end, and viola! That’s how you raise the water level in the swimming pool.” — Obama

John the Libertarian on August 28, 2010 at 3:04 PM

.
“But Daddy, won’t that be a lot of work!”
.
“It’s a three-letter word: J-O-B-S.”
.
“Yay, Daddy. You plugged the damn hole and now you’re filling up the swimming pool. And you’re the only one who realizes how smart all this is.”
.
“No, honey, Margaret Carlson knows, too. But that’s about it.”

MaxMBJ on August 28, 2010 at 5:56 PM

Don’t get too excited… Obama is not mentioned in the article, but Bush is. And this is lame… “A referendum on the economy”
A better way of condensing the article would have included a slap directly at the Obama, Pelosie, Reid… But vague wrong direction piece, with non support for extension of the Bush tax cuts is a weak ’oh what to do’, when what we need is “Obama’s Policies are Killing the Country” headline.

RalphyBoy on August 28, 2010 at 5:07 PM

You are correct but imagine the spasms they had to write what they did. They are all invested so heavily in their (we are smarter) libtard utopian dream it will take them a long time to come to commone sense , if ever!

bluemarlin on August 28, 2010 at 5:57 PM

The problem is that Keynes wanted the government in bad times to spend the money it had stockpiled in good times. Nobody in this government ever saved a dime. Even if they’d kept Social Security in Al Gore’s mythical lock box, they could’ve dipped into that during recessions but no, this government spent every nickel they could get their hands on and then borrowed when that wasn’t enough.

Kafir on August 28, 2010 at 6:25 PM

Kafir on August 28, 2010 at 6:25 PM

The issue is the gov’t needs to give us our money back so we can spend it to grow the economy. Obowma must prevent further tax increases and CUT their wasteful spending. If Obowma said today he would stop spending, prevent tax increases, halt cap and trade, halt Obamacare and get out of our way, the economy would grow.

I can dream, can’t I?

dthorny on August 28, 2010 at 6:38 PM

And while many other factors also explain the lack of economic energy…

You mean factors like having a free-market-hating leftist, whose only redeeming feature is his consistent ineffectuality, in the White House? Like that?

drunyan8315 on August 28, 2010 at 6:39 PM

My money says that they will still endorse the candidate that runs on big government economic intervention and big spending.

tommer74 on August 28, 2010 at 6:45 PM

I can dream, can’t I?

dthorny on August 28, 2010 at 6:38 PM

It is a good dream though!

bluemarlin on August 28, 2010 at 6:50 PM

The issue is the gov’t needs to give us our money back so we can spend it to grow the economy.

I can dream, can’t I?

dthorny on August 28, 2010 at 6:38 PM

Øbama (Channeling George Bailey): You’re thinkin’ of this place all wrong as if I have the money in a safe. The money’s not here. Your money’s in a bridge in Alaska and a school in Oakland and in a hundred public employee union pension funds. You’re giving them the money to retire on and your grandchildren will pay for it. What do you want? For the public employees to live on peanut butter instead of caviar?

Kafir on August 28, 2010 at 7:07 PM

Look on the bright side..the Democrats are going to boost employment on a short term basis…when the moving companies come to pack up all their $hit after they get fired.

BigWyo on August 28, 2010 at 7:10 PM

What happened? Did the pot heads at the Post lay off for a day or two and sober up?

BowHuntingTexas on August 28, 2010 at 7:18 PM

We’ve been going back and forth for a century
[Keynes] I want to steer markets,
[Hayek] I want them set free
There’s a boom and bust cycle and good reason to fear it
[Hayek] Blame low interest rates.
[Keynes] No… it’s the animal spirits

thebrokenrattle on August 28, 2010 at 7:23 PM

It looks like the Keynesian theory of infusing massive amounts of government cash into the economy has fizzled
=========================================================

Its time,now to enforce,a KOOL_AID Ban on Libs,and just to be sure,RINO’S!!!!!!!!!!!!!!!!!

canopfor on August 28, 2010 at 7:26 PM

Impeachment, nothing more, nothing less……..

ultracon on August 28, 2010 at 7:36 PM

Maybe it really is a war FOR poverty? I kid but sometimes you wonder if but for a second.

CWforFreedom on August 28, 2010 at 5:05 PM

D’oh! I was in a hurry (no excuse). I had intended “War on Prosperity” not “War on Poverty.”

BuckeyeSam on August 28, 2010 at 7:36 PM

“restructure government to something we can afford.”
====================================================
Thats a brilliant idea!!

canopfor on August 28, 2010 at 7:41 PM

…All part of Obama’s War on for Poverty. And yet Obama walks around with an Alfred E. Newman attitude, “What me worry?”

BuckeyeSam on August 28, 2010 at 4:40 PM

Sorry, but that really had to be fixed.

Siddhartha Vicious on August 28, 2010 at 8:04 PM

Ahh, I see others had already ‘fixed’ it – sorry for the redundancy.

Siddhartha Vicious on August 28, 2010 at 8:05 PM

I’m sorry, I could only watch moments of the Saturday address by simpleton. Taking credit for the return of the troops, never mentioning W and bragging about more and more spending is a disgrace. It is impossible for myself and most of my friends and associates to dispise the actions and incompetence of this imbecile any more than we do. Every moment he spends in our White House is a disgrace that gnaws at me day and night. He is a child and unable to talk, govern, lead, teach or act properly. God help us.

highninside on August 28, 2010 at 9:15 PM

Never before have I been counting down the days to vote.
I cannot wait.

ouldbollix on August 28, 2010 at 9:25 PM

Sigh. We were not in a recession; we were and are in a depression. The refusal of the mainstream media to acknowledge this frustrates me to no end.

Theophile on August 28, 2010 at 4:57 PM

What depression? didn’t you hear the stock market was up 100 points yesterday. Obama is a genius and all is well once again.

angryed on August 28, 2010 at 9:36 PM

“Here’s how we fill up the swimming pool. You take a bucket of water from the deep end and pour it into the shallow end, and viola! That’s how you raise the water level in the swimming pool.” — Obama

John the Libertarian on August 28, 2010 at 3:04 PM

Actually, you take a bucket of water out of your neighbor’s pool (the future), spill about 1/4 of it carrying it across the yard, and then dump it in yours.

BadgerHawk on August 28, 2010 at 10:07 PM

I truly hate cold weather, and I dread the end of Summer, but November cannot get her soon enough.

Pelayo on August 28, 2010 at 11:29 PM

Economics 101

Keynesian economics fell flat on it’s face for FDR during the 1930s, and will likewise do the same for BHO 2010. Why? Because large blocks o money are quickly gobbled at up at the top and never reaches the bottom where it’d needed. On the flip side, tax cuts, returns, rebates etc, are between you and the taxman…no middleman to eat it up before it gets to you.

byteshredder on August 29, 2010 at 1:28 AM

Well at least some in the media are pretending to peek through the blinders.

There’s been a little boy shouting for all he’s worth that the Emperor has no clothes… finally, someone heard.

petunia on August 29, 2010 at 1:45 AM

“In a household, when children are put in charge, disaster follows. Now it’s been proved that the principle also works on the national scale.”

Look out!!The kids have the checkbook!

flameofjudah on August 29, 2010 at 3:08 AM

President Marx and First Lady Jamesbrownindrag are reportedly stunned at the editorial. That any member of the media question the superior intelect of our leader, The Messiah, is not to be tolerated.

The fact that this newspaper would interrupt their $50K per night vacation is unbelievable.

Marx will send Plugs Plagerizer out to correct the record. Then Marx will send the IRS after each editorial board member.

Cleveland Steamer on August 29, 2010 at 8:34 AM

If President Obama is serious about changing government, he first needs to understand economy in basic terms, but especially , because the others are based on government having control over ever aspect of it.

The most important part of government change it to understand that the Constitution can only be changed via a long drawn out process for a purpose. However, todays’ politicians have usurped the Constitution via other smoke and mirrors (i.e Executive Order, and an unrealistic number of simple bills or resolutions to feed the number of Bureaucratic Agencies that have been created as a result of something (an emotional response) the public says must be done.

For example, Katrina was a Hurricane that devastated Mississippi and Florida. But, why did N.O. receive all of the attention? The winds of Hurricane Katrina did a small amount of damage however, N.O. was devastated because the levy system developed to keep N.O from drowning in a tidal storm surge were breached.

So who was the agency responsible for recovery FEMA, DOD, DHS, EPA, OSHA, ETC? Well, they all came forth and claimed to be in charge so instead of helping during the critical part of the emergency there was nothing but government in fighting. After two weeks they figured FEMA was in charge but, FEMA is part of the DHS (Who if primarily charged with defending U.S. from attack by from outside. Anyone sense a conflict here.

The bottom line is government needs to start at the top ane define Constitutionally what the roles of each level of government are or not responsible to the public for. Keeping in mind that the everyone has an obligation to help their neighbor surviving the first phases of the emergency and then Local, State, and Federal have a particular part to play but neither of them is supreme to the other. Otherwise, it ends up with the Federal Government claiming control and then the “let them handle it” sets in and nothing gets done.

The need for change is simple during a local event the local government is responsible until events over whelm the local government who requests the next level (State for assistance), and when the local and State government are overwhelmed then the Federal government as the final arbitrator.

However, we all know that recovery is costly in any type of emergency, therefore, the Keynesian economic model serves U.S. well in terms of generating and accounting funds necessary to maintain resources for mitigating damage, and recovery from disasters.

MSGTAS on August 29, 2010 at 10:16 AM

If I were you, I’d be careful. Otherwise Obama might choose you to be our new “Fubar” Czar.

LMAO !!!!!!!!! +1000 !

nagee76 on August 29, 2010 at 10:31 AM

If I were you, I’d be careful. Otherwise Obama might choose you to be our new “Fubar” Czar.

@Dr.Charles

LMAO !!!!!!!!! +1000 !

nagee76 on August 29, 2010 at 10:36 AM

You mean factors like having a free-market-hating leftist, whose only redeeming feature is his consistent ineffectuality, in the White House?

drunyan8315 on August 28, 2010 at 6:39 PM

Wait. McCain’s not President.

ZING! Just had to get that in there. Thanks! You all are beautiful!

SagebrushPuppet on August 29, 2010 at 10:52 AM

I’m guessing the editorial board of the Denver Post has now been quietly scratched off The Joker’s invite list.

SagebrushPuppet on August 29, 2010 at 10:53 AM

Gibbets are structures, aren’t they?

andycanuck on August 29, 2010 at 1:01 PM

Ah, the idea is not to let the economy recover. Permanent underclass means permanent voter base. Smooths out the wealth a bit too. The idea is to have everyone making under 25K a year so that other peoples in other countries can have those resources of ours, I mean theirs. Trapped like rats, you got that right. We desparately need editorial boards across the country to realize their mistakes and take up the fight.

moyeti on August 29, 2010 at 1:10 PM

I can hardly wait to see how the Democrats try to sell their “no jobs, no power, no cars, high taxes, huge bureacracy, no freedom, no hope for success” agenda!!

landlines on August 29, 2010 at 2:25 PM

This election, the Post concludes, is a referendum on the economy. It should also be a referendum on federal arrogance and executive competence.

It will be, as will the elections in 2012. The majority of voters have finally learned (the hard way) that the presidency should not be an entry-level job.

AZCoyote on August 29, 2010 at 8:18 PM