Friday, February 22, 2008

Is Something Out of Nothing Possible? (Frank Shostak)

Can something come from nothing? John Maynard Keynes seemed to think so, and Frank Shostak shows how idiotic Keynes's ideas were; unfortunately, they are still being followed today, most notably by those that run the unconstitutional private bank known as the Federal Reserve:

In his testimony to the House of Representatives Budget Committee on January 17, 2008, Federal Reserve Chairman Ben Bernanke gave strong support for President Bush's fiscal stimulus package to strengthen the economy. Among various tax measures the package also offers a direct tax relief for low- and moderate-income individuals. According to Bernanke there is good evidence that cash that goes to low- and moderate-income individuals is more likely to be spent in the near term — hence, from this perspective, it is going to be beneficial for economic growth.

For most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. It is held that increases or decreases in demand are behind increases and decreases in the economy's production of goods and services. It is also held that the overall economy's output increases by a multiple of the change in expenditure by government, consumers, or businesses.

Read the rest

Note: for more on the Federal Reserve, see this video or read the transcript.

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