History proves (at least) three things: 1) Austerity works and 2) Keynesianism always fails, in part, because 3) Keynesians are lousy historians.An article well worth your time.
Since 1920, periods of American and European austerity have refuted Keynesian dogma.
Because the facts don't fit their narrative, Keynesians never mention the American Depression of 1920-1921 or explain its recovery.
President Warren Harding cut the federal budget 48 percent from 1920 to 1922 The economy boomed.
Harding's successor, tax-cutting, budget-slashing President Calvin Coolidge, continued Harding's fiscal prudence, spending less in 1928 than Harding did in 1922.
America enjoyed "Coolidge Prosperity," nine years of budget surpluses and a world-best economy.
Wednesday, July 09, 2014
The Patriot-News reports:
Posted by Steve Bartin at 11:36 AM