Ed Balls Take Note, Obama’s Keynesian Stimulus Has Failed

It seems a long time ago that Will Straw, the former Treasury spin doctor under Gordon Brown now turned blogger and think-tanker, was arguing about the need for the Balls/Brown tax, borrow and spend stimulus plan. The voters and the 2010 general election put paid to that and George Osborne has resisted the calls of Balls (and Will) for more government borrowing to spend on boosting short-term growth. Will Straw argued, citing research by a “progressive” American economist, that spending increases were the most efficient form of deficit spending. The theory can now be tested against the outcome.

Obama did implement a massive $787 billion stimulus programme financed by more borrowing of the kind that Will Straw and Ed Balls still advocate. The chart above shows the results versus the predictions. Unemployment is far higher than the supporters of the “porkulus” projected, higher even than they projected it would be without wasting three-quarters of a trillion dollars. Not since the 1930s has US unemployment been so high for so long. Told you so.



Tip offs: 0709 284 0531
team@Order-order.com

GuidoFawkes Quote of the Day

Sepp Blatter speaks:

“I am not corrupt. I believe I will go to heaven one day.”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

“Dodgy” Dave v “Jurassic” Skinner “Dodgy” Dave v “Jurassic” Skinner
Missed PMQs? Catch Up in Full Here Missed PMQs? Catch Up in Full Here
Do you have what it takes to join a GCHQ hacking SCHOOL? Do you have what it takes to join a GCHQ hacking SCHOOL?
IDS Expenses Row: Was Credit Card Suspended Or Not? IDS Expenses Row: Was Credit Card Suspended Or Not?
Questions Channel 4 News Don’t Want to Ask Questions Channel 4 News Don’t Want to Ask
Zac and Boris Warn Dave Zac and Boris Warn Dave

NHS UN-APPY NHS UN-APPY
MP Shagging His Secretary on Highest Paygrade MP Shagging His Secretary on Highest Paygrade
Owen Jones Gets Owned Owen Jones Gets Owned
Read Sajid Javid Speech Slamming CBI Read Sajid Javid Speech Slamming CBI
Watch: BBC3 Greatest Hits Watch: BBC3 Greatest Hits
LORD DEBEN’S CLIMATE ALARMISM LORD DEBEN’S CLIMATE ALARMISM
WATCH: Terror Training Exercise in London WATCH: Terror Training Exercise in London
Meet the Next Generation of Troughing MPs Meet the Next Generation of Troughing MPs
Boris on £275,000 at Telegraph Boris on £275,000 at Telegraph
Supercar Socialist Polly Toynbee Supercar Socialist Polly Toynbee
Read CPS Janner Statement in Full Read CPS Janner Statement in Full
UKIP Broke, Homeless UKIP Broke, Homeless
Doctors: Capitalism ‘Conflicts With Health and Public Interest’ Doctors: Capitalism ‘Conflicts With Health and Public Interest’