Trump proposes welfare for Mexican immigrants

Last week the Dow index hit records highs largely on the assumption that a Trump presidency will mean massive new spending on infrastructure to shock the economy back to life like a paramedic putting the paddles on a patient whose heart has quit. That’s sad because it reveals how Keynesian and medieval the economic thinking of too many investors has become.

Bush allocated $800 billion to jolt the economy after the Great Recession. Can anyone tell me what we got for it? Of course, the medieval economists counter with “The economy would have been worse without it.” But they don’t know that. They have no data on what might have been, and for a field that is supposed to be data driven they make a lot of decisions based solely on their imagination.

Yes, they have the new-Keynesian models that “prove” the spending helped, but what do you expect from math models constructed with the assumption that state spending drives the economy?