Economists Are Not Historians

It's past time for some economic myth-busting: the American government is not "starved" for revenues, but it should be.  The Internal Revenue Service and the U.S. Treasury collect more taxes annually than any nation in history, but, in each of the three-plus years of the Obama administration, the government has spent well in excess of a trillion dollars more than Treasury receipts.  The president and the American left tell us that America must spend more. They're wrong. In the 1930s, when economist John Maynard Keynes wrote The General Theory of Employment, Interest and Money, the governments of most prosperous nations -- and their debts -- were small, certainly when compared to today's government behemoths.  At that time, "increasing aggregate demand" using deficit spending was, at best, a plausible response to economic downturns.  Today, gigantic, unwieldy governments in Europe and at home -- and their economies -- are overwhelmed by massive debt.  The...(Read Full Article)