The Fed Will Print More Money - Barrons.com

IS QUANTITATIVE EASING THE ANSWER (AND WILL IT WORK IF NO OTHER CHANGES ARE MADE?: The Fed Will Print More Money - Barrons.com: "- Sent using Google Toolbar"

Hasn’t Donlan basically summed up this week what needs to be done (and is being managed by the current administration in exactly the wrong way?

In other words, if the US is support the type of living standards people want, doesn’t it need to change? And, don’t these changes involve moving up from an education and labor structure geared to a manufacturing society to one geared to handle information processing, automation and engineering and scientific excellence – along with great entrepreneurial drive?

On one hand there is clearly the need to help the less fortunate – which includes those who by the traditional baggage they carry and hold on to find it hard to adapt. This is the Democratic, liberal mantra. They hope that the larger society and its progress aren’t so retarded by all these wealth transfers that it can still grow. Right now, the evidence in America is that it isn’t growing; yet it needs to in order to create jobs for the fifth of the population without them.

The Republicans are a political class with their own baggage. They were in control under Bush and overspent and failed to challenge the entrenched interests of unions and entitlement receivers.

Will printing money help if the direction of society doesn’t change? One strongly doubts it.

What needs to be done? Clearly something to support – and, not constrain – the forces of entrepreneurial growth, educational excellence and individual responsibility.

Right now, US policy would appear to be continuing to push these forces away from America to reward individuals and companies. Changing this is a more important and bigger challenge than running the printing presses.