Posted on 05/14/2022 9:39:36 AM PDT by ChicagoConservative27
On Friday’s broadcast of CNN International’s “Quest Means Business,” Jason Furman, who served as Chairman of the Council of Economic Advisers under President Barack Obama and on the Council of Economic Advisers and the National Economic Council under President Bill Clinton and is currently a Professor of the Practice of Economic Policy at Harvard University and the Harvard Kennedy School, stated that while some action was needed, President Joe Biden’s economic stimulus plan was too big, badly designed, ultimately “brought us a lot more inflation than it did in terms of economic growth.” And “got the balance wrong.”
(Excerpt) Read more at breitbart.com ...
A Year late and 10 trillion dollars short.
He said it at the time it was being debated, to his credit.
Exactly as predicted before the madness began 🤪
In other news, if you want your toe to stop hurting the first step is to quit hitting it with a hammer.
The problem with stimulus is you want self-retiring debt. In other words, you buy a power plant, and it pays for itself over time. The money you spent building it and maintaining it stimulated the economy and then the money you spent comes back over time as power, or profit on the power. But when you just spend money to spend money, which is what we did, you get inflation because people who get checks don’t invest the money for a return, they buy cotton candy and a second car. That causes inflation. (Really!? This is a surprise?)
I have been saying for years, if you raise the minimum wage to $15 everything will simply start costing more (aka inflation)
and TADA!!
People seem to forget that there was an inflation flair up during the Obama years. It just wasn’t quite as harsh as the Biden inflation is and seems to be heading UP even more.
So Biden didn't just swing and miss, he fumbled the whole game. When a political body tinkers with the economy, even with the best intentions, even when the tinkering is directed toward a self retiring debt, success only breeds more arrogance and dangerously stimulates the temptation to tinker the more with other people's economic lives. Biden was playing with trillions of borrowed dollars that probably cannot be paid back.
So a self-retiring debt, such as a toll bridge, is a prudent government investment because it permits commerce to thrive by crossing the bridge but there is still a downside. The money devoted to the bridge in a normal world must be diverted from the private economy and that diversion means that resources that the free market would allocate cannot be devoted to increasing production-and incidentally reducing inflation.
But we were not in a normal world, although we are reentering one now. Our world was not normal because up until now as the world's superpower and reserve currency we had a seemingly infinite capacity to borrow which we have clearly exploited with abandon but we have mindlessly squandered what we borrowed. We didn't have to pay the price for the borrowing and squandering until now because of our unique status.
Now comes the reckoning.
All those dollars will now diminish the economy, their absence from the private sector will reduce productivity and further increase inflation. Worse, if we are now at a point where we must either pay or go bankrupt, the whole system can break down.
These are the wages of the unbridled arrogance of the left.
I was thinking about the situation, and it occurs to me that the government wanted to spend the money NOW so they could take credit for improving the economy. If you want to build a big infrastructure project the planning and permitting process takes years. Then there is all the ecology approvals and the government financing private organizations to sue to stop it all. (Yes, they do that.) So, if they decided to rebuild all the highway bridges or build new power plants, it would be ten or twenty years before the money started getting spent, even assuming that they did all get approved.)
On the other hand, the stimulus was going to people sitting at home on their arses because they lost their jobs due to the prior mentioned policies. Both are asinine policies. They destroyed small businesses that people worked for decades to build. They made a new underclass, content with no freedoms, and living in their protected bubbles. Let's see how many mental problems comes from that in years to come.
“Never underestimate Joe’s ability to f*ck things up.” -Barack H. Obama
Shocking... that he told the truth.
Another Ivy League Retard trying to “teach” economics?
What a cape!
That was the crux of the problem with Obama's "shovel-ready jobs" schtick... that & the fact that there is a relatively inelastic force of qualified workers who can perform those technical tasks.
I work at a job-shop metal fabricating shop. We literally can't hire anybody that even marginally qualified to run CNC machines. Oh, we get a lot of people who claim they can. But you find out in a few days if they have any level of competency. The few that do, you undertake to train them. If they have anything "on the ball" they are out the door as soon as somebody else offers them another dollar an hour.
Knew a gal whose family sold CNC machines
I was thinking that would be a good skill to learn
Being a CNC machinist is a good living. You’ll always have work & overtime. I have noticed that the trade schools often tell prospective students how much they can make in the trade. The number is very accurate, but is quoted as a range, between this and that. The young people that we get coming thru the door always seem fixed on the top number. The number that is only attainable when you have the skill to work with little supervision. Needless to say they are unhappy to learn what the starting rates are and ready to jump while still in their apprenticeship. And that creates a problem wherein they never really complete their education. You get 40 year old ‘machinists’ who can’t even perform a basic setup and indicate a part sufficiently to make a successful tool pass. The tragedy is that at 40 with 20 years of experience they should be making that top number.
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