Friday, February 20, 2009

Santelli Gets To Obama

Robert Gibbs, the partially sentient White House Press Secretary, lashed out in an ad hominem attack at Rick Santelli.

My, what thin skins these Obamians have.

Mr Santelli had the audacity to say that if the Keynesian multipliers were above 1.0, that is, if every dollar of government spending yielded more than a dollar in private sector growth, then why do we need to worry any more? Just keep spending, and spending, and spending as we have been, and everything would be fine.

But the fact that no sane policy maker would do that, shows that the "multiplier" is not above 1.0. Instinctively, we know that to be so.

In fact, the multiplier is not a constant number at all, but a variable depending on a number of factors we don't even fully understand, and cannot predict. The multiplier is a random function, rather than a constant. The effect of government spending is not linear, but decreases after some maximum point.

But Mr. Gibbs did not address that point. He merely attacked an American citizen who dared to speak out, to raise his head up from his miserable work to question the One.

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