The Weekly Sedition

Tuesday, 21 April 2015

Richard Berry, Keynesian (Letter to the Editor)

Filed under: Economics, Media, Politics, Principles — Tags: , , , , — mikewb1971 @ 5:45 AM

From: Mike Blessing
To: Editorial Page Editor, Albuquerque Journal
Date: Wednesday, 8 April 2015
Subject: Richard Berry, Keynesian

Today’s Journal had as its headline a bit of free advertising — dare I call it a “puff piece” ? — about Richard Berry’s 50-mile bike loop.

Back in 2011, when Berry first proposed this elephante blanco project, he said that it “would create jobs.”

And it will for some — in the same way that Barack Obama’s “American Recovery and Reinvestment Act” (the 2009 “stimulus package”) created jobs.

First, there’s the construction jobs for workers hired to build the project. But — those aren’t permanent jobs. When the project is completed, those jobs go away.

Then there’s the positions in Parks & Recreation and Public Works that will be added to maintain it. Those positions (and the funding for them) will be subject to the whims of future City Councils and Mayors.

The basic idea here is that public spending will create economic activity in the private sector, because those hired to build and maintain this project will spend their paychecks in the market, thus the “stimulus.”

What Berry and Obama either don’t realize or care about is that monies taxed from the private sector could also be spent in the market by the people who earned them in the first place in the same manner. Is that not a “stimulus” as well?

No, Richard Berry wasn’t the first to propose this sort of nonsense. Nor was Barack Obama. That “honor” goes to John Maynard Keynes.


NOTES

  1. Approximate reading level – 10.7

Copyright © 2015 Mike Blessing. All rights reserved.
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