Tuesday, December 13, 2011

Keynesian Theory (Bunk)

We've been told that increasing government spending will have a "countercyclical" effect on unemployment.

Here's a chart (from Mark Perry) that shows what nonsense that idea is.

Next time one of your lefty friends claims that government spending has a positive effect on unemployment - whip out the chart - it won't convince them - but it will at least show up the folly of their "thinking."

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