Friday, July 31, 2009

a lesson to be had?

There's a lot more qualified commentary on the Cash for Clunkers program out there than what you're about to read--but humor me, if you will.

My big take on the thing: if you put stimulative programs in the hands of PEOPLE, they are likely to provide a kick to the economy.

Now notice, that's not the same as saying that we need more programs like C4C. I am concerned that when you play with the foundation of the economy (we still ascribe to theories that sound like "supply and demand", right?), you throw far more instability into the system than is worthwhile. But that's not a lesson that this administration is even remotely willing to listen to, so we'll save that for another day. . .

Anyhow: stimulus to consumers CAN work. . . under certain circumstances. Stimulus to governments--not so much. Designing spending to promote special projects--not so good for the economy.

Class dismissed.


Post a Comment

<< Home