European GDP Takes a NoseDive...

...and America is one of the ducks in the row.

Jeff Carter has it right. Read the whole piece.

Quote:

---

(snip)

The multiplier effect of government spending is 0.

(snip)

Europeans never learned that. They are full on Keynesians.

(snip)

---

Keynesian economics sounds good........but only on paper.

A one dollar check to one million private citizens will accomplish more than a one million dollar check to a CEO to "save" a failing company. The private citizen will buy bread whereas the CEO will take the money and run to the Cayman Islands.

Solar energy, GM, Chrysler, wind energy, mega-banks,..........on and on! But the idea of "bailouts" wasn't about the economy. It was all about politics.