John Maynard Keynes is dead and should be treated as such. He was an economist who championed the notion that In recessions the aggregate demand of economies falls.  In other words, businesses and people tighten their belts and spend less money.  Lower spending results in demand falling further and a vicious circle ensues of job losses and further falls in spending.  Keynes’s solution to the problem was that governments should borrow money and boost demand by pushing the money into the economy.  Once the economy recovered, and was expanding again, governments should pay back the loans.This Keynesian model of economics is demonstrated in our governments fetish to stimulate the economy.  This Keynesian model is again proven ineffective and in fact a failure. GOVERNMENT SPENDING SLOWS GROWTH !

Art Laffer Breaks it down.

“Federal government spending as a share of GDP rose to a high of 27.3% in 2009
from 21.4% in late 2007. This increase is virtually all stimulus spending,
including add-ons to the agricultural and housing bills in 2007, the $600 per
capita tax rebate in 2008, the TARP and Fannie Mae and Freddie Mac bailouts,
“cash for clunkers,” additional mortgage relief subsidies and, of course,
President Obama’s $860 billion stimulus plan that promised to deliver
unemployment rates below 6% by now. Stimulus spending over the past five years
totaled more than $4 trillion.”

Also, ” every dollar of public-sector spending on stimulus simply wiped out a dollar of
private investment and output, resulting in an overall decline in GDP. This is
an even more astonishing result because government spending is counted in
official GDP numbers. In other words, the spending was more like a Valium for
lethargic economies than a stimulant”.

So what are we to make of this ? The worlds’ economy is used as a control group and  government interventions slows growth. When we hear politicians talk of “infrastructure spending helping the economy” or intervention “saved G.M” we know that they are lying to us. As a matter of fact G.M still owes us 42 BILLION .  GM owes $27 billion on the nearly $50 billion it received from the auto bailout and Ally Bank, the company’s lending arm, owes $14.7 billion of the $17.2 billion taxpayer-funded bailout it received.

PLUS G.M enjoys a $45.4 billion tax exemption that could leave it tax-free for years. GM will be able to shield its future profits using past losses using so-called “tax-loss carry-forwards,” the Wall Street Journal reports. Companies that have recently changed ownership aren’t supposed to be able to take full advantage of those, but a little-noticed ruling last year exempted TARP companies from that restriction.

The auto bailout is separate and apart from the  over 1 Trillion dollar stimulus bills. According to the Hoover institute, That money went to states and other entities and was in the most part squandered.

We “borrowed” all that wasted stimulus money  by selling bonds to other governments. China, Japan, Saudi Arabia, god knows who.

As of May 31, 2011, over 14 TRILLION ($14,344,668,281,211.01)  in public debt was outstanding, according to the Treasury’s “to the penny” calculation. The U.S. population at the end of May was 312.25 million. That’s everyone — not just adults and civilians. If you divide the total debt owed by the total number of Americans, you find that each one owes $45,939.

So tell your friends that they and their kids EACH OWES 46 THOUSAND DOLLARS  to foreign governments due in no small part to the statist manipulation and confiscation device known as stimulus spending .