SUSPENDED BELIEF:Alan S. Blinder: Return of the Bond Market Vigilantes - WSJ.com
The lesson Mr. Blinder might have discussed re: Europe is how socialism leads to stagnation (at best).
If he wanted to look at home, he could have looked at what the UAW did to GM with its excessive and socialist demands.
The idea of stimulating the economy re: Blinder is like giving a shopaholic another credit card.
If there is a lesson the housing bubble should have taught it is that something is wrong with the balance between taxes and transfer payments and the ability of the economy to produce enough good jobs.
Investing (i.e. taking tax money and giving it to those with social needs) is nothing more than hoping the shopaholics credit card will be discharged in bankruptcy.
Now the sovereign debt bubble is the next stage of trying to create 'magic money'.
More taxes are absolutely NOT the answer! As shown with Europe, there is no incentive to business or to grow the economy in all these fiscal changes. In fact, raising taxes is a further discouragement.
So Blinder and the Dems get what they want, only the government can really provide jobs because that's where cost/benefit, supply/demand live in a suspended state.
Thursday, May 20, 2010
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