Wednesday, December 5, 2012

Wee Jimmy Flaherty Meets The Multiplier

Economics is a very dangerous science.
John Maynard Keynes, Essays In Biography, p. 128

The wee banty leprechaun is riding high in the House (and only in the House) as he implements his stacks and stacks of financial crap that will soon wash back on him like a shower of shit. There is a nervousness becoming apparent to the 'Harper Government'. The invisible hand of free market capitalism seems to be on sabbatical. All the theoretical parts are in place and yet the economy refuses to gush forth. The budget projections with each additional month seem to fall further and further behind. When the wee banty sack of crap starts spouting his bullshit when the stock market is open, it starts to go down as soon as he opens his ambulance chasing mouth. What ever could be wrong?

Soon to rain a shower of shit?

Before the wee Jimmy became the Minister of Finance he was certain that the multiplier was some new Asian sports car! It couldn't possibly be important, since Ayn Rand never mentioned it once. But is very important, well more than that, it is critical. For every dollar a government spends correctly, it could quite possibly return a dollar or much more in tax revenue. It soon becomes clear that if a government is really cagey with where it spends, it could be very handsomely rewarded with a wave of increasing tax revenue. History has proved that a benevolent, generous government that supported its citizens would be rewarded with ever increasing tax revenues. A positive optimistic outlook is essential, where by everyone is intended to benefit. This would be known as a positive multiplier.

The greatest gift of the 'Harper Government' to economics is that they are going to prove that the theory of the multiplier can also run backwards! For example if you spend tax revenue in the wrong places, such as gifts to corporate whores, and the rich who don't really need it anyway, you could have a situation whereby every dollar so spent could cause a dollar or more in the economy to be driven to ground. For every good middle class job that is destroyed, with the hope that the same people will do the same job for a minimum wage contractor, the amount that you thought you would "save" is held back by the workers that you originally fucked with! With each person you fuck over, the rest become more frightened, until the economy literally tanks. Or, the multiplier goes into reverse! i.e. a negative multiplier. Only fascists and conservatives can pull this off, and the present 'Harper Government' is certainly not letting down economics.

But perhaps when they appoint the new Bank of Canada Governor, Preston Manning, then the wee Jimmy will finally have someone at his level that he could understand. EEEEEllllllimmmmmanatttte the Defffffiiiicccccettttt.  

The fiscal multiplier in reverse. Only a conservative can do this.....

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