Battle of the Impotent Central Banks - WSJ.com

WHO IS RESPONSIBLE?: Battle of the Impotent Central Banks - WSJ.com: "- Sent using Google Toolbar"

Anyone focusing on the Fed or other central banks, as the article notes, is living in la-la-land.

The issue is the mismatch between incentives to produce (or in the case of most European countries and the US these are 'disincentives') and social policies.

Too much is being redistributed and taxed from producers. Regulations and bureaucracy hold back investment.

Taking one look at this week's Bloomberg graphic of the companies recently acquired by Google shows that there are lots of ideas turned into businesses.

However, there aren't enough of them. And, its all well and interesting to think of minimum wages, minimum social benefits, etc. - but then, why not require kids to finish high school? This past week the report was that 1/3 of US kids 'don't' finish high school.

Yet, we allow teachers unions to use seniority vs. skills and performance to determine who gets to teach children. And then, the teachers have extravagant retirements and benefits (see the articles on NYC teachers for example).

We've distorted the rewards and a as result the economy is stagnant (if not in absolute decline) - one can say logical regression. Why? Because government and unions are taking too much out of society from those who produce.

Look at California. There Obama-type policies have been in the forefront for years and the State's economy no longer leads the country.

Sadly, Obama seems utterly clueless. And, the Tea Party movement sadly mirrors the Republicans in CA - where the Republican base is happy but almost no Republicans get elected by the general public.

The issue at hand would seem to be whether we want to let the economy grow and whether to do this, we are willing to have fewer handouts. Thus, rejecting the idea that people can't and don't have a responsibility to improve their own lives.