Sunday, July 25, 2010

I've Always Thought

That legislative impulse to DO something never helps the economy. The government can't ADD to pile to make the economy grow. Pump priming is largely a myth that rarely works. Keynesian impulses might have work once in world history, and that was in 1933.

The only effective legislative response the government can take is to do nothing, or, even better, lighten the 'pile' by cutting marginal rates and removing onerous regulatory burdens. If your response defaults statist, for your own good, you may want to at least refrain from acting on your instinct, Nancy.

Don't just do something, sit there.

At this point she'd have to roll back a lot of damage she has already done.


Home on the Range said...

It's going to take 15 years to undo the damage.

I think the reason they were so hot on extending the unemployment benefits was NOT to be good to the out of work, but to forestall the riots that are inevitible when the economy tanks.

BobG said...

"That legislative impulse to DO something never helps the economy."

You got that right.

"The mystery of government is not how Washington works but how to make it stop."
-P.J. O'Rourke

Old NFO said...

Yeah, we need to make it STOP!!!

Ritchie said...

Look up the Depression of 1920. Never heard of it, probably. But lots of people have heard of "the Roaring 20s".