Posted on 12/30/2016 2:29:06 AM PST by expat_panama
...Kudlow is being eyed by the incoming Donald Trump administration as the next Council of Economic Advisers Chairman. Kudlow is not afraid of good ideas, nor does he dismiss good policies solely because they come from the Democratic Party...
...Kudlow understands this well, and will bring this common sense to a CEA that has too often embraced what is senseless.
Sadly, it’s not just on the subject of inflation that credentialed economists have lost their way. To see why this is true, ask most any economist what ended the Great Depression. Almost to a man and woman the reply will be World War II. Economists quite literally believe a war that killed 800,000 able-bodied Americans...
...Having little real world experience to speak of, economists believe that human action can be modeled, controlled, and that it has limits.
Thankfully Kudlow believes little of what economists believe almost unanimously. Because he doesn’t, Kudlow has the chance to finally make the CEA reasonable, rational, and most important of all, a source of good ideas...
...The crisis back in 2008 was that politicians and government officials were seeking to blunt the very market corrections that were necessary for the economy and markets to regain their health. There’s your crisis that no one predicted.
The main thing is that in modern times the economics profession has become ridiculous. Because it has, it needs a shakeup. Kudlow has the potential to provide just that simply because he doesn’t embrace much of what has made economics so modernly ridiculous in the first place. Larry Kudlow would bring rationality to what is absurd, and that’s why it’s essential that he be named Chairman of the White House’s Council of Economic Advisers.
(Excerpt) Read more at forbes.com ...
Most people think that if most people have a factory job and are getting a paycheck, that’s “prosperity.” It never occurs to them that the factories were making stuff that was getting blown up.
During the war, no cars, no appliances, etc., were made. WWII did not end the Depression. It took place DURING the Depression, which lasted into 1946.
Kudlow makes sense. When companies and corporations fail the sharks and seagulls SHOULD start circling. It is a healthy continuance of the lifecycle and promotes growth of effeciency.
Propping up inefficient entities brings a cancer into the market.
No one predicted? This baffoon has a gig with Forbes and has the audacity to pass this as off a reasoned explanation? No mention of the Clinton-era programs mandating mortgages go to a select segment of persons with no ability to pay-down those mortgages?
How about Teddy The Swimmer reminding all of us that there was nothing wrong with Derivative-based investment vehicles and how it would all be OK? Should all the readers of Forbes collectively wipe that from our puny memories? What tripe from Forbes.
During the war, no cars, no appliances, etc., were made. WWII did not end the Depression. It took place DURING the Depression, which lasted into 1946.
The point is apt, of course. OTOH it looks like prosperity at the start, if you are not the one who is being attacked.E.g., at the start of WWII America wasn’t involved, but Britain was desperately buying all the armament it could from America. Thus the job that my Dad had when I was little. ‘Course Britain soon enough ran out of cash reserves, and then it was all coming out of the domestic economy.
Not to mention the profits from easily winning a war of aggression . . .
>>Propping up inefficient entities brings a cancer into the market.
This is why the article says that economics has become ridiculous. Taking all the “inefficiencies” out of the market has been determined to be removing humans if possible and removing the humans of developed nations if you need labor. So people lose their jobs and start working for low wages to be “efficient”. Then the government steps in and provides welfare, long term unemployment, and easy disability to give these workers relief and to remove them from the unemployment roster to help validate the old ridiculous economics model.
You prevent one cancer by inviting in a new, and much more deadly, cancer.
I like Kudlow, and I admire Kudlow for overcoming his issues. But he’s too old, has too much baggage, and he may be more effective as a media voice.
“Too old?” He is one year younger than President-Elect Trump.
Good point. Few seem to recall how the CRA eased in starting with the biggest banks being told to make at least x # of risky loans to a certain socio econ class. That plan kept expanding until it was imposed on even smaller state banks as opposed to national then regional. Soon we had NINJA loans out the ying yang with Freddie and Fannie. Obama’s socialist econ folks are all pushing Keynesian macro theory using mortgages to back the damn money they create. Seems our econ folks missed a basic econ course -”Money and Banking.” years ago that students like I were taught that money was created by selling treasury bills/bonds etc. Many here recall buying series E savings bonds as the US gov was once considered like Fort Knox in the late 40’s-mid 60’s. I recall the stacks of Series E bonds that paid my sister’s college education. Today, these econ socialists have made our econ a joke. This I am owed, the gov should provide this for me is further breaking us. We have got to DX every socialist handout and MAKE people work. We need sound econ policy based on the reality that we owe 20 trillion minimum and have to live within our means and cut out all programs that are not essential. Congressmen getting AFGE insurance is just one wasteful program. Entitlements are a serious problem.
Manufacturing is the heart of the economy.
De industrialization killed GB.
More tariffs and less income taxes.
Good point. Few seem to recall how the CRA eased in starting with the biggest banks being told to make at least x # of risky loans to a certain socio econ class. That plan kept expanding until it was imposed on even smaller state banks as opposed to national then regional. Soon we had NINJA loans out the ying yang with Freddie and Fannie. Obama’s socialist econ folks are all pushing Keynesian macro theory using mortgages to back the damn money they create. Seems our econ folks missed a basic econ course -”Money and Banking.” years ago that students like I were taught that money was created by selling treasury bills/bonds etc. Many here recall buying series E savings bonds as the US gov was once considered like Fort Knox in the late 40’s-mid 60’s. I recall the stacks of Series E bonds that paid my sister’s college education. Today, these econ socialists have made our econ a joke. This I am owed, the gov should provide this for me is further breaking us. We have got to DX every socialist handout and MAKE people work. We need sound econ policy based on the reality that we owe 20 trillion minimum and have to live within our means and cut out all programs that are not essential. Congressmen getting AFGE insurance is just one wasteful program. Entitlements are a serious problem.
I hope this is a purely rhetorical statement and not intended to be true. I literally cannot think of a single good idea that the Democrat Party has had in the last five years.
More than that - the so-called salad days after the war were an aberration, in that the manufacturing infrastructure of most of the world - Japan, Europe were decimated - the one big exception being the US. Our mfg base was up & running and we had virtually no economic competitors.
However, by the mid-70’s much of the 1st world had caught up to US. Our mistake was thinking that the prosperity we saw in the 50’s & 60’s - into the 70’s, would continue.
We were wrong; we didn’t adjust. The unions continued to demand that a worker be paid the same amount as the guy doing the same job in Japan & China at 1/10th the wage.
Thus ended the salad days...
Chronological age is just a number.
A number that is applicable to all.
Pleased you mentioned Steve Forbes. On another thread several of us were discussing him. Hoping he would be offered a slot somewhere in the Trump Admin. Still hoping! Perhaps some sort of advisor on tax reform? He would be a strong advocate of his “post card” size tax form. I’m okay with that!
It became ridiculous the day they let Paul Krugman and Robert Reich join.
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