The failure of Keynesian economics to get us out of the Depression, its role in the economic insanity that was the 1970′s, it’s abject failure to successfully stimulate the Japanese economy makes a very compelling case that it is time to discard the ideas of John Maynard Keynes onto the ash heap of history along with the failed economic ideas of Marx and Lenin among others. Hopefully, the failure of Obamanomics will send Saul Alinsky and Annie Leonard off to join them soon!
With the misguided and failed theories of the left safely out of the discussion on how to produce economic growth and prosperity, we can actually begin to have a serious and productive conversation about what policies to enact if we are going to fix the economy. First, let’s me repeat this truism about economic policy. No matter what the tax rate is, government revenues will remain fairly constant at around 18% of GDP and personal income taxes at around 8.5%:
At the same time, tax revenue has matched GDP almost exactly: