If congress can actually improve the economy with a stimulus package, then why shouldn't it pass a stimulus package every year, month, week, or day?
The answer, of course, is that congress cannot actually improve the economy unless it stands out of the way.
That's right. The best stimulus package is no stimulus package and an unwillingness to meddle in economic matters.
It seems counter-intuitive that doing nothing is in fact doing something, but consider if everything that you do is wrong, then doing nothing is a good idea.
You should hear my econ professor try to convince me that real liquidity can be conjured out of the mist via the embezzlement that is the fractional banking system. "Hrmmm, I just got a loan for $10, perhaps I will loan out $100 give it a funny name - something that doesn't scream debasement." And like all fraud, it eventually catches up to you - in this case in the form of enormous fiat money contractions. Woo Fed!
ReplyDeleteI think I have it all out my system - for a few hours at least.