Monday, June 28, 2010

Having your cake...

...and eating it too.

Cutting deficit spending (increased deficits should have been in the manifestation of tax cuts, but that of course removes power from the political process, a concept anathema to most politicians), while increasing growth during a period of debt-deflation is more than just a tall order.

We have heard countless speeches detailed things called "task forces" or "initiatives" or "plans of action" or "committees" all DESIGNED to somehow alleviate economic problems faced by nations.

Unfortunately, with market forces almost entirely co-opted by flailing policy makers whose zone of understanding is more finely attuned to popular opinion (and the corresponding effect on votes) than mechanisms that can increase economic growth, their behavior seems entirely rational: correct the problems they have helped to create by creating more problems. A sustainable, if unhealthy, ecology.

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