Failed Keynesian Policies cause Jump in Suicide Rates

Posted by PITHOCRATES - May 4th, 2013

Week in Review

Those people who can afford to pay a little more?  Those 50-year olds in established careers?  Those people President Obama has been relentlessly attacking as being greedy and selfish?  They appear to be killing themselves in record numbers (see Suicide rate rose sharply among middle-aged Americans, CDC finds by Atossa Araxia Abrahamian posted 5/2/2013 on Reuters).

The suicide rate among Americans aged 35 to 64 rose sharply between 1999 and 2010, a trend that could reflect the stresses of a sharp economic downturn as well as other traditionally overlooked challenges of middle age, according to a federal report released on Thursday.

The annual rate of suicide rose 28 percent among Americans aged 35 to 64 during the study period, but changed little for older and younger people, the Centers for Disease Control and Prevention said. The number of suicides among people in their 50s doubled in that time frame…

The increase in the U.S. over the past two decades may also reflect the influence of the weak economy – suicides generally rise during downturns – and an increase in the use of prescription opioid painkiller drugs, the CDC said.

The U.S. economy twice went into recession during the study period, briefly in 2001 and sharply during the so-called Great Recession of December 2007-June 2009 that sent the unemployment rate as high as 10 percent…

In 2010, there were 33,687 U.S. deaths from motor vehicle crashes, compared to 38,364 suicides, according to the CDC.

Suicides kill more than cars.  And cars kill more than guns.  Yet the Obama administration is putting all of their efforts behind new gun control legislation.  Instead of trying to stop something that kills more Americans then guns or cars.  A bad economy.

This is an indictment of Keynesian economics.  Alan Greenspan kept interest rates artificially low during the Nineties.  Keynesian-style.  People were borrowing that cheap money and making a lot of bad investments with it.  Greenspan called it irrational exuberance when testifying before Congress.  And later admitted that he waited too long to start raising interest rates.  Which is why the early 2000s recession was such a painful one.  After the dot-com bubble burst.  All those dot-coms that had no profits or even a product to sell went belly up.  After irrational investors had poured billions into them.  Raising the market value of publicly traded Internet companies to over a trillion dollars.  Most of which disappeared after the bubble burst.

Bud did the Keynesians in Washington learn?  No.  They went back to keeping interest rates artificially low.  Creating a housing bubble.  An even more insidious one.  Going beyond irrational exuberance.  Thanks to Bill Clinton’s Policy Statement on Discrimination in Lending.  Using the full weight of the federal government to force lenders to qualify the unqualified.   Creating a housing bubble full of toxic subprime loans.  And when this bubble burst the recession was so bad we had to put the word ‘Great’ in front of it.

A terrible one-two punch for those in the workforce building their families and their retirement portfolios.  Thanks to Keynesian economics and those artificially low interest rates.  Which only lead to great big bubbles.  That burst into great big recessions.  Can you imagine someone losing big in the early 2000s recession?  Working hard to recover their losses?  And just get back on track only to see their mortgage go underwater in the Great Recession?  Forcing them to dip into what little there was remaining in their retirement accounts.  While they are taking care of their kids.  Their aging parents.  And hearing their doctors say for the first time in their life, “Your blood pressure is a little high.”

Perhaps the government should spend less time trying to outlaw guns and more time on the economy.  And by more time I mean less.  They need to pull the government out of the private sector economy.  And let market forces take over.  Including those interest rates.  Perhaps then they can stop one of the greatest killers in our lives.  Keynesian economics.  That take us from exuberant highs.  To crushing lows.  Wiping out our finances in the process.  Leaving us filled with despair.  Which is probably why suicide rates have soared in the past decade.  Because of the Keynesian policies of our government.  Those failed policies of the past that they refuse to let go of.

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