I found this in an article I shared over at The New Media Militia on how Obama’s Cash for Clunkers Boondoggle (which also belongs to NH Rep. Carol Che-Porter and Sen. Greene Jeanne Shaheen) was a total failure.
It is an excellent quote when dealing with the dingbat Keynesians who populate the left.
Keynesian economics is fundamentally misguided because it focuses on how to encourage more spending when the real goal should be to figure out policies that result in more income.
This is one of the reasons I wish people focused more on “gross domestic income,” which is a measure of how we earn our national income (i.e., wages, small business income, corporate profits, etc) rather than on “gross domestic product,” which is a measure of how our national income gets allocated (consumption, investment, government, etc).
Simply stated, Keynesians put the cart before the horse. Consumption doesn’t drive growth, it’s a consequence of growth.
There’s another great quote at the end of the article bout Cash for Clunkers that is worth sharing. “The program was bad fiscal policy, bad economic policy, and bad environmental policy. The trifecta of Obamanomics.”
H/T Instapundit
