Did borrowing from Social Security to hire government workers really ever boost or jumpstart the economy?
Or: Nordhaus and Proving a Theory Wrong
Since the 1950s, Nordhaus' book "Economics", has been considered a fundamental textbook in economics. He, the Ivy League professor, won a Nobel prize. Refuting or denying his assertions in his text would leave one wide open to attacks as an ignoramus or just a plain idiot. No matter what your logic or math. Facts just confuse the issue and are not important. However, if one reads Nordhaus carefully and truly understands economics; one understands that Nordhaus and many other economists are conjecturing--guessing. Their theories are just that--theories. Unfortunately, as many mathematicians have noted; because math is a logical system, when anyone--economists included--express an idea with mathematical symbols; that idea is given a credibility it does not have; as if transformed into a real mathematical formula. When Nordhaus wrote that when unemployment is high, the government must borrow money to hire people to create jobs and boost the economy; that was his theory.--A theory that has yet to be proven.
While this approach was tried during the Roosevelt era, with the TVA and other programs, there were many other factors to account for. This is another factor of economics and all social sciences. It is a science that deals with people and how people react. The factors are so many and complicated, so many different relationships, that we mere mortals truly can't know. Jonathan Weeks, a noted sociologist has pointed this out very well in his works. Paul Krugman, a noted economist has pointed out , that some facts of economics we can know empirically.--We see it! But, there is so much more we don't know.
The economic programs of the Depression Era did not really pull the USA out of the Depression. They may have helped. But, WWII really got this country out of the Depression. Millions of men, able bodied young men, were taken off the streets and unemployment by being made soldiers and shipped off to Europe or the Far East. The whole country went into production overdrive supporting the US army and lend lesae for all the Allies, including Russia. (An often skipped over fact.) Then, for a decade, while the rest of the free world, was in physical and financial ruin; the US had free reign to soar economically.
Did borrowing from Social Security to hire government workers really ever boost or jumpstart the economy?
I would say no.
While the economy was good, America at the top of the economic ladder, the borrow & hire policy could be implemented without loss and; go unnoticed as a luxury. But now, that money is tight. The failure of the policy is proven. It doesn't work. An Obama stimulus package did not stimulate. The theory is finally proven for what it is.
To add insult to injury, many of these government services are unnecessary. The workers are arrogant and working in a way that is detrimental to society. The normal checks & balances that would overcome bad worker attitude and bad workmanship are not present in the false economy of the government workforce.
Most of what we know about economics is empirical. We see it. Supply & demand. Tariff wars don't work. Etc. For decades, people talk about balancing the budget and the false economy of government jobs. It a home situation we know how it works. You need to balance your budget. You can't spend more than you have. Businesses don't hire people who don't produce. Etc. Etc.
Giving unemployed people jobs not created from need, may give someone a job; a nice charitable move--better than welfare; but it does not stimulate or get the economy going.
