What happened to the conservative Republican Party?
“America vs. Socialism” was the theme of the Conservative Political Action Conference this past February. “One of the most serious challenges our countries face is the specter of socialism. It’s the wrecker of nations and the destroyer of societies,” Trump said during his 35-minute address to the General Assembly on 09/24/19. But times have changed and now Trump is the promoter of give aways and subsides.
Thanks to the coronavirus, the United States is heading into a recession. 26.4 million people have applied for unemployment insurance aid since the country has been shut down. More high unemployment numbers may be on the horizon. Trump’s solution to high unemployment and closed businesses was ask congress to spend enough money to help everyone and every company pay their bills.
$1200 to each adult and $500 to each minor is being given to every legal resident and $600 per week to every person laid off from their job in addition to each states standard unemployment benefit for up to four months.
Businesses are to receive low interest loans. Some with strings attached and some with no strings.
This is the best example of a form of socialism that I can imagine. Democrats are delighted to go along with the big spending. Bernie Sanders, an avowed Democratic Socialist, is seeing his ideas being instituted. Donald Trump said there will never be socialism in America has proven to be the person most responsible for fulfilling Sanders ideas.
For sure it is Keynesian economics. Keynesian economics is an economic theory of total spending in the economy and its effects on output and inflation. John Maynard Keynes advocated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the Great Depression. Keynes argued that an interventionist government could help smooth out recessions by using fiscal policy to prop up aggregate demand. Strategic government spending could spur consumption and investment, argued Keynes, and help alleviate unemployment. Keynes’s theories gave rise to a new dominant paradigm in economic thought, which was subsequently dubbed Keynesian economics. While still popular, some have argued that Keynesian economics has provided a pseudo-scientific justification for short-sighted elected politicians to run fiscal deficits and accumulate massive levels of government debt.
Where is Peter Navarro and Larry Kudlow? If they are supporting Donald Trump actions now they have realized that John Keynes was right all along.
Thank goodness Donald Trump never heard of Milton Friedman.
Coast Contact 