Ignorance Is Bliss

The power of positive delusional thinking.

I can't exactly explain why I remain in a good mood during this grueling ordeal.  One reason might be that I don't get to see much news.

Today as I was getting my third cup of coffee, I saw that the House GOP leadership was "emboldened to hold the debt ceiling hostage because of the poor employment numbers."

There are few things that get me more irate than supply-side economics.

They don't work.  They've never worked.  Tax rate can be too high, and they can be too low.  But supply never creates its own demand.

The basic equation for demand is Demand=Consumers spending + Business investment + Government spending + (Exports-Imports).  D=C+B+G+(E-I)

If you slash consumer spending - as happens when there is high unemployment - then demand falls.

If you import more than you export, demand falls.

If business stop building new plants and creating new product lines, demand falls.

And if you slash government spending, guess what happens.

The "Fifty Little Hoover" - otherwise known as Americas governors - labor under balanced budget amendments and have to balance the budget.  This usually involves raising revenues and cutting spending.  Currently, it involves a lot of laying off government workers.

So, GOP nitwits, if you slash government spending when businesses aren't investing and consumers aren't spending, then guess the f*** what?  Demand falls.  Employment falls.  The economy declines.

I have no idea what leaders in GOP actually believe.  But which is worse?  That they don't believe in the basic equation of macroeconomics?  Or that they do, but don't care?