Comments (19)

• Ohhh Henry

  I think the usual prescription is, "We must follow the Japanese plan even more vigorously."

  It's like attributing the headache your neighbor feels after running into a brick wall to not his having run toward it with sufficient speed.

  Published: May 19, 2009 8:17 PM

• Yancey Ward

  Every single Keynesian claims Japan wasn't Keynesian enough.

  Published: May 19, 2009 8:33 PM

• Conza88

  "Every single Keynesian claims Japan wasn't Keynesian enough."

  They won't stop saving! :madface: lol

  Published: May 19, 2009 8:39 PM

• filc

  Such a ridiculous argument. It will never be enough and they will always reply with "Spend more, it wasn't enough!

  Published: May 19, 2009 9:11 PM

• Gil

  "Every single Keynesian claims Japan wasn't Keynesian enough."

  Because it's still the #2 economy rather than being the #150 economy?

  Published: May 19, 2009 10:08 PM

• Slim934

  Jumpin Jesus 15%!

  Wow. Just wow.

  So many money printing presses, so little time. Says the keynesians.

  Published: May 19, 2009 11:12 PM

• Thinker

  ""Every single Keynesian claims Japan wasn't Keynesian enough."

  Because it's still the #2 economy rather than being the #150 economy?"

  This seems like the archetypal Keynesian response-"It would have been worse!" This assertion is unsubstantiated and runs contrary to numerous historical examples of economies recovering without government intervention. Keynesians make this accusation, and there is no way to respond to it because there is nothing to which one can respond!

  Published: May 20, 2009 12:06 AM

• Gil

  Thinker, you dingbat, I was having a humourous dig at Keynesianism. I merely implied that since many see Keynesianism as Hyperinflation then more Keynesianism/Hyperinflation would destroy Japan's economy in a way they'd go from the second biggest economy to a third-world-esque '150-ist' economy. Duh!

  Published: May 20, 2009 12:51 AM

• Micah

  Gil, I'd have to say I didn't catch that and thought along the same lines as Thinker. Your sarcasm wasn't obvious.

  Oh yea, and that sucks for Japan.

  Published: May 20, 2009 1:40 AM

• Gil

  "Your sarcasm wasn't obvious."

  :.(

  Published: May 20, 2009 2:42 AM

• Lucas M. Engelhardt

  To be fair, Keynesians had no way of knowing that the animal spirits were that depressed...

  Now, that they know that they are, we know that a $1 trillion deficit is not enough.

  Just to be safe, let's run a $15 trillion deficit. Then, even if it crowds out all private spending, we'll still have economic growth since GDP was about $14 trillion last year...

  Why is it that Keynesians never take their system to its logical conclusion?

  I'm guessing it's because the conclusion is not "logical" at all.

  Published: May 20, 2009 6:22 AM

• fundamentalist

  Lucas: "To be fair, Keynesians had no way of knowing that the animal spirits were that depressed..."

  Why didn't they consult a psychic or shaman? And if $1 trillion won't appease the animal spirits, will they consider human sacrifice next?

  The cult of Keynes reminds me of the CIA guys who water-boarded a detainee 85 times. I can hear them now. "Let's try one more time!" The first 84 didn't work, so maybe the next one will.

  Published: May 20, 2009 8:11 AM

• Ohhh Henry

  The excuses are already prepared, like a pile of brush left behind one's lines with which to start a backfire.

  "Writing in the Sunday New York Times, [Alan] Blinder says a combination of expansionary monetary and fiscal policies prevented 2009 from turning into 1930.

  "Mission accomplished it isn’t. Premature withdrawal of the stimulus could turn 2010 into 1936, when a series of missteps -- the Federal Reserve raised reserve requirements while FDR balanced the federal budget -- sent the recovering economy down for Part II, according to Blinder." Link

  When the economic situation worsens it will be blamed on a combination of prudence and thrift.

  Published: May 20, 2009 3:55 PM

• mikey

  Well, the Japanese are good at miniaturizing.

  Published: May 20, 2009 8:22 PM

• RakeRocter

  that's 15.2% AT AN ANNUALIZED RATE.

  still horrible, but it's important to be clear and accurate.

  Published: May 20, 2009 11:15 PM

• RakeRocter

  that's 15.2% AT AN ANNUALIZED RATE.

  still horrible, but it's important to be clear and accurate.

  Published: May 20, 2009 11:16 PM

• Matt

  Sadly, this huge drop doesn't actually go refute keynesianism. Japan=high saver=>HORRIBLE RECESSION, or so sayeth the keynes'.
  

  Published: May 21, 2009 4:35 AM

• Lee

  Oh, come on people... Printing money is about SAVING jobs, right?

  Government ones anyway...

  Published: May 21, 2009 3:39 PM

• Thinker, the humorless dingbat

  No, no, no, my silly little pupils, creating money out of thin air allows people to buy more things without producing anything, stimulating growth in GDP. This makes voters happy so that they keep voting their highly educated and enlightened representatives into high office and giving them more and more control of their lives. Fascism? Shmashism. Communism? Shmommunism. Pay no attention to that crazy Hayek guy. Silly little pupils.

  Published: May 21, 2009 9:45 PM