Sunday, July 3, 2011

Shovel Ready Keynesianism

UPDATE: Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job

My Keynesian plan would have failed for only $15,100 per job...

John Maynard Keynes, The General Theory of Employment, Interest, and Money, chapter 10:

"If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coalmines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for leases of the note-bearing territory), there need be no more unemployment and, with the help of the repercussions, the real income of the community, and its capital wealth also, would probably become a good deal greater than it actually is."

Let's give it a go:
There are 14,000,000 Americans unemployed
It costs $20.00 for a decent shovel at Lowes.com
$280,000,000.00 Total amount of "Stimulus" buying shovels would create
Pay at $7.25/hour Federal minimum wage
for 2,080 standard work year (hours)
Would cost $211,120,000,000.00 for 1 year's "Stimulus" employing available labor digging holes

$211,400,000,000.00 Keynesian solution employing available labor digging holes.

$211B....for full employment.... Wow. Obama and the Democrats spent 6 times that and unemployment went up.

Keynes is supposed to have said: "When the facts change, I change my mind. What do you do, sir?"

Obama, tries to spend a $Trillion more.

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