Fed Confronts Limited Tools to Stir Economy - WSJ.com

IGNORANCE IS BLISS: Fed Confronts Limited Tools to Stir Economy - WSJ.com

Why is it that in all of these discussions (or seemingly all), there isn't more of a discussion of lessons that can be learned from the 1930's - i.e. that it wasn't monetary policy that actually continued the recession in 1937/38, it was fiscal policies and specifically tax increases and support for unionization?

Of course the Democrats are blind to all of this, as are their union allies - but, that doesn't mean the subject isn't ripe for discussion.

To the Democrats, it is logical that the more they can give away, the happier their constituents will be.

To those who economic fruits the Democrats want to take and give away, it makes sense to put less at risk and not overextend.

Likewise, if the returns are better by sending dollars and jobs abroad, it is only logical that this will be done. Democrats would like to hope that this wouldn't be - so would lots of their populist, likely unemployed constituents.

But, the bottom line is a producer has to earn a competitive return on capital based on competitive prices for goods sold. Unions of course have no concept of this and that's why they'd like tariffs, closed shops, etc.

The longer it takes for the US to come up with pro-jobs, pro-business, pro-investor regulations and taxes, etc., the longer it will take to bring the economy back.

The willingness of Democrats to spend a little less starting in the beginning of August isn't really the type of change that will accomplish much. They've built up a mountain that needs to be torn down of anti-business policies - which, like the mileage standards issued by the White House last week, attest to government thinking it knows better than the market how to provide jobs and an improved standard of living for all Americans.