Tuesday, July 19, 2011

Money Matters

I learned 40 years before George Bush pulled the trigger on stimulus spending, (fiscal policy), that it would not have the desired effect. It fails each time.

I was an Economics undergraduate studying monetary policy in the early 60’s This is when Friedman and Schwartz debunked all the previous explanations of what had caused the Great Depression and showed that it was the product of a failure of monetary policy in their book A Monetary History of the United States, 1867-1960 .

Obama wanted more stimulus spending and nothing is more pleasurable to liberals than pissing money down a rat hole. So here we are three years after recession ended and the only thing that has changed is that the country in serious financial straights.

I said then that our fiscal course of printing money would led to our bonds being rated like Mexico’s. Do you think I might be right now?

Government spending can never improve things; it can only pile up more debt.

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