Quote:
Originally Posted by Tyrone Slothrop
Man in lifeboat: Look! Over there! A case of bottled water! If we paddle over there, we'll have water to drink!
Other man in lifeboat: Sure, there'd be a limited bump in our hydration, but that case of bottled water cannot keep us alive for ever. We're all doomed.
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I congratulate you on the breakthrough. It only took years of argument, but you've finally realized Stimulus is nothing more than a short term palliative. A year or so ago I recall you still arguing about how it could spur a recovery.
By the way, I'm not arguing Stimulus is a flawed approach. I agree Stimulus is the best course early on, and it did save us from dire consequences at the outset of the crisis. But we're past that point now. We're at the point where need need something to trigger growth and employment. The evidence to date shows loose monetary policy and govt spending have not, and cannot, do either. It's now time to think, "Hey, maybe we should try the opposite and see if that works."
What's there to lose? If refusing Wall Street its demanded QE3, allowing rates to rise a bit and publicly ruling out Stimulus don't work, we can always run a Stimulus later. The damage can't be any worse than what's going on already.*
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* Personally, I think mass break-ups of large telecomms, TBTF banks, media corps, energy companies, and numerous other benefactors of our corporatist system would do wonders for employment, innovation, and wage growth. But that's another debate entirely.
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