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> I predict that the market will recover, just like it always has, but feel free to disagree. What are the public policies that will help the market recover? (

> I predict that the market will recover, just like it always has, but feel free to disagree. What are the public policies that will help the market recover? (assuming that you mean the “job market” or “market economy” in general, and not the stock market which is another topic) Are those policies pursued or likely to be pursued in the next few years? It seems politically untenable in the US to break from the “socialism for large business/the wealthy, free market for everyone else” slate of policies. And this is with either political party. Whenever there has been epochal change and recovery in the US economy during the 20th century there have been substantial policy changes: the New Deal in the ‘30s. The Military-Scientific spending in the 40s-60s.

gridlockd 6y ago
The market recovers on its own, because it reflects the wants and needs of the population. The most important thing the government can do is to maintain the stability of the currency as well as law and order. Whenever there has been a government response to market crisis, it is hailed as "the solution" in retrospect by the powers that be. The alternative history where the intervention never took place doesn't play out and can't be judged on its merits.
- pbourke 6y ago
  > The market recovers on its own, because it reflects the wants and needs of the population. What does a successful recovery look like? There are a large number of market-distorting policies in effect today. I'm talking about both policies that predate the crisis and those that went into effect during the response (these are mainly monetary - the fiscal ones seem temporary at this point). > The most important thing the government can do is to maintain the stability of the currency as well as law and order. To get to this point, the government would need to undo interventions that are currently in place throughout the economy. If the government were to "do nothing" (really, "change nothing") starting today, then this would in no way be some kind of "free market" like you're implying should exist. Do you think that the government should undo interventions across the economy? Or apply new ones? Or leave the existing alone? I'm genuinely curious
  - gridlockd 6y ago
    > Do you think that the government should undo interventions across the economy? It can't undo them, so that point is moot. The government shouldn't have been injecting so much liquidity that wasn't really needed for all these years - but now is certainly not the time to remove that liquidity. The big question is, is the dollar going to collapse under that weight? If so, then there's nothing that can be done now that makes a difference, so we might as well stay course for the time being.

gridlockd 6y ago

The market recovers on its own, because it reflects the wants and needs of the population. The most important thing the government can do is to maintain the stability of the currency as well as law and order. Whenever there has been a government response to market crisis, it is hailed as "the solution" in retrospect by the powers that be. The alternative history where the intervention never took place doesn't play out and can't be judged on its merits.

pbourke 6y ago
> The market recovers on its own, because it reflects the wants and needs of the population. What does a successful recovery look like? There are a large number of market-distorting policies in effect today. I'm talking about both policies that predate the crisis and those that went into effect during the response (these are mainly monetary - the fiscal ones seem temporary at this point). > The most important thing the government can do is to maintain the stability of the currency as well as law and order. To get to this point, the government would need to undo interventions that are currently in place throughout the economy. If the government were to "do nothing" (really, "change nothing") starting today, then this would in no way be some kind of "free market" like you're implying should exist. Do you think that the government should undo interventions across the economy? Or apply new ones? Or leave the existing alone? I'm genuinely curious
- gridlockd 6y ago
  > Do you think that the government should undo interventions across the economy? It can't undo them, so that point is moot. The government shouldn't have been injecting so much liquidity that wasn't really needed for all these years - but now is certainly not the time to remove that liquidity. The big question is, is the dollar going to collapse under that weight? If so, then there's nothing that can be done now that makes a difference, so we might as well stay course for the time being.