| HappySqurriel said: I would have thought that Keynesians would finally realize spending your way out of a recession as being an unworkable strategy by now; unfortunately this approach is driven more by blind faith than rational thought, and they’re unwilling to admit that all the massive spending that has happened has done is delay the crisis, prolong the recession, and indebt people who have yet to be born. The problems with the US economy (and you could say the economy of the western world) is that individuals, organizations and governments are carrying too much debt to cover their unsustainable spending habits, and people have abandoned rational investing (based on fundamentals) for speculation and gambling. Taking on more debt to encourage further unsustainable spending and to return the gambling addicts to the table makes the problem worse, not better; and any short term gains from this strategy will quickly be erased when the next crisis begins. |
Some of them appear to be getting the idea now.
Of course, I think they might just be scared out of their minds at the prospect of becoming the next Greece at the moment, so it remains to be seen if this new course will hold once things improve. I won't be holding my breath.
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| To Each Man, Responsibility |
