Tuesday, February 4, 2014

how to create a slow, tepid and sad economic "recovery"

Let's make a list of the ways in which Congress, President Bush, and especially President Obama have worked to slow down the recovery. (Thanks!) Note the significant risks/costs *inherent* in:

a.) our recent fiscal policy sins of commission: troubling debt/deficits in current accounts-- with no sense of urgency or political courage for change in the near-term (I blame Bush and the GOP for a lot of this; they should have known better)

b.) related to that, the many and varied forms of "stimulus" that politicians have embraced out of ignorance/wishful thinking or from a crass/cynical desire to take credit for a recovery by passing policies that might seem correlated with economic recovery

c.) our continued fiscal policy sins of omission: lack of serious discussion entitlement reform for future debt (thanks to a lack of policy imagination and courage by GOP'ers-- and esp. the demagoguery of Dems)

d.) risky monetary policy: controlled by the Fed but certainly encouraged by elected folk

e.) a really slow roll-out of a massive public policy experiment with vastly unknown impacts at both a macro and micro level: i.e., ObamaCare

A-E are all kicks in the pants to the macro-economy and its micro parts, particularly private investment (which has been "amazingly" slow to "recover") and labor markets.


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