A Nail in The Coffin of Keynesian Economic Theory

A Nail in The Coffin of Keynesian Economic Theory

Federal deficit least in 5 years on revenue hike, spending cuts

The deficit is the gap between the government’s tax revenue and its spending. The gap narrowed for the budget year that ended on Sept. 30 because revenues rose while spending fell.

For those on the Left that are continuing to defend the bankrupt theory of Keynesian Economics, pay close attention. We have factual proof that Keynesian Economics does not work and that free market Capitalism along with spending restraints do. 

The government says the deficit for the 2013 budget year totaled $680.3 billion, down from $1.09 trillion in 2012. That’s the smallest imbalance since 2008, when the government ran a $458.6 billion deficit. However, hold on to your hate as the Left blusters as to why it was not increased economic activity and spending restraints!
Even with a lackluster economy tax revenues were up enough to make a huge difference.  Fortunately this was not offset by reckless spending by the White House and Democrats.  One would think this would be enough proof to have even the most hardliner change their mind.  But, that won't happen.  Why? The deficit reduction does not fit the Liberal World Veiw.  Good news such as this MUST be connected to and dependent upon the government.  Since it is the result of the market and not government, the Left will find reasons NOT to celebrate.

Revenue jumped 13.3 percent to $2.77 trillion, reflecting a slightly better. And spending declined 2.4 percent to $3.45 trillion, in part because of across-the-board spending cuts that took effect in March.

The above facts are not to be ignored as we move into the negotiations over the debt limit and spending.