Thursday, December 29, 2011

FOCUS ON OPPORTUNITIES NOT OUTCOMES!: John H. Cochrane: The Fed's Mission Impossible - WSJ.com

John H. Cochrane: The Fed's Mission Impossible - WSJ.com

Let's try focusing on "opportunities" not deal with "outcomes".

The bane of all these policies is that we want to have safe outcomes and reduce risks. However growth, change and development is full of risks (again, anathema to liberals and Democrats).

If the economy could turn from subsidies, tax preferences, protective regulation, etc. and move to do everything it can to promote opportunities and reduced barriers to entry (there is nothing unions and big government likes more than barriers to entry to prevent competition), then the market could take care of itself.

Allow failure! Then investors know they have to watch out or they'll lose money.

As society is finding out over in Europe (and should be concerned about in the US), eventually the economic downside of these well-intended liberal policies of equalizing outcomes come up with a bill that is very difficult (if not impossible to pay).

No one really knows now how the Greeks will pay their bill. Obama and the Democrats think there will never be a serious attempt to collect on the entitlement spending bill they are running up! We'll see.

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