Princeton economist Alan Blinder, former Vice Chairman of the Fed, was quoted today in today's New York Times:
“Students learn in Economics 101 that lower taxes and/or higher levels
of government spending can mitigate recessions by boosting aggregate
demand,” he writes. “That simple Keynesian idea should be no more
controversial today than Darwinian natural selection or global warming.”
Leaving aside Darwinian natural selection, Blinder is right on target. Economics 101 teaches complete nonsense about macroeconomic policy. If higher levels of government spending worked, as a macroeconomic policy, we and Europe would be in Nirvana. The enormous growth in government over the past 40 years has lead to a dramatic reduction in economic growth.
Using the term "aggregate demand" is a fudge. No one really knows what that term means -- neither did Keynes. But, one thing we know: increasing government spending, as a policy, is a fools game. If that worked, Venezuela would be the richest country in the world.
The reason Blinder is right on target is that global warming is another of the left's hopeful excuses to limit the economic potential of the world economy. Blinder and others like him relish the idea of stunting economic growth for the masses so that they can preserve their own hegemony. You don't see very many poor people or lower or middle income people carrying banners about global warming.
It is the wealthy and the elite who fancy the global warming alarms. Throw in protected academics, insulated from competing with others for their jobs. These elite snobs are the real champions of the religion known as global warming. Unfortunately, the scientific backup for this is best described as slim to none. What little trends were in the data have all but disappeared. Even if the trend of the last decade of the last century had persisted, it is largely irrelevant.
We have billions of years of history of carbon dioxide penetration of the atmosphere and its impact upon global temperatures. In fact, throughout most of the history of the earth, carbon dioxide had much, much higher penetration of the atmosphere than the pitifully small amounts of today that so alarm the elite. We also have temperature data for this history. Guess what? No relationship -- at all!
So, yes, Professor Blinder. The idea that big government promotes economic growth is about as valid as the "science" of global warming. They are both religious tenets of the religion of the wealthy and the elite leftists who promote this nonsense.