Thursday, July 19, 2012

On further reflection...

In my last post here, I proposed that the government should dramatically crank-up the borrowing and spending, while the fed began raising interest rates as a method to help straighten out the economy.  Of course, we'll never know if that would work, since no one will do that, at least not without the excuse of another world war, or something similar.

But, there is another possibility: the government goes ahead and drives our economy right of the "fiscal cliff" everyone is talking about, and... it turns out to be a good thing, instead of the cataclysm economists think it will be.  After all, economists thought that the end of World War II was going to turn out economically terrible, but it just didn't happen.  And if it does turn out good, I'm sure all the politicians will be patting themselves on the back for their inaction.

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