Post from steventhayn at CHUMLY

The Liberal Narrative Exposed
The Liberal Narrative Exposed:: The economy can only be stimulated by an increase in production. There is no other way. Liberals believe that increasing the money supply can stimulate the economy. The truth is that monetary policy (increasing the money supply) cannot stimulate the economy any more than a drug addict can be cured by taking another hit of heroin.

Liberals base this belief on FDR’s policies during the Great Depression. They believe FDR ended the Great Depression by increasing the size of government. The problem with this belief is that it is not true. FDR created the longest depression in US history and it only ended after his polices were rejected by Congress in 1946. WWII simply masked the effects of liberal polices by trading huge increases in debt for war time production.
"Government statisticians present economic growth in terms of monetary expenditure data, such as gross domestic product (GDP) and industrial production. These indicators are designed in line with Keynesian thinking that spending equates to income — hence, more spending leads to a higher national income and therefore to a higher economic growth.” September 01, 2009 by Frank Shostak

Economic growth should be measured in private sector material output. If increasing the money supply can stimulate the economy, then we need to print boatloads of money and stimulate it. However, stimulus packages like the ARRA don’t work because they only stimulate consumption but do little to stimulate production.

The ARRA invested $100s of millions of dollars into medical care for the needy, salaries for government workers, and food for the poor. All of this money is gone with nothing to show for it. If the amount of money that was spent on ARRA projects had been invested in factories and production, we would now have ongoing production, jobs, and tax revenues being generated by these factories. What we have is debt with no production.

If the $787 billion had been spent on creating jobs by spending $250,000 per job, there would have been 3,148,000 jobs manufacturing jobs created. This would have lead to another 3or 4 support jobs or another 12,000,000 jobs or a total of 15,000,000 new jobs.
The current unemployment rate according to The Bureau of Labor Statistics in February 2011 is 8.9 percent or 13.7 million total unemployed.
The money was simply misspent. We could have totally eliminated unemployment. Now, we have debt and unemployment, the worst of both worlds.
http://chum.ly/n/7aa708