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I agree with this, but if you merely throw money at the economy without resolving supply chain issues, (which is the case we have now) - we get inflation. Becau
by Pokepokalypse 5y ago
I agree with this, but if you merely throw money at the economy without resolving supply chain issues, (which is the case we have now) - we get inflation. Because it's more money chasing after fewer (available) goods.
The previous US administration basically created supply chain problems with it's Hooverian trade policies. (ie. doing the same thing over and over and expecting different results. Nope. We got the same results we got in the late 1920's + COVID).
It's going to be hard to unwind that. I think the central bank has done a pretty good job making arguments that sustained low interest rates are a necessary evil. Unfortunately, the government (ie. aggregate of congress, senate, SCOTUS, and POTUS) are having a hard time swallowing that we need a looser fiscal policy. All because of political idiocy.
I feel like Keynes should be taught to all children in primary school.
- ikerdanzel 5y agoPrevious admin brought the economy up. A lot of people getting jobs in those 4 years compare to Barry's lacklustre 8 years and near zero interest. I suggest you check back with historical data before association with Hoover. Wuhan virus bought it down. We will see the the old guy can do anything with suppose more popularity votes than Barry.
- AnimalMuppet 5y agoYou can leave out SCOTUS. They don't have much impact on fiscal or monetary policy.
- betterunix2 5y agoThey have the power to kill major initiatives; see e.g. how SCOTUS curtailed some of the New Deal programs (and how it took the extraordinary threat of court packing to stop them from going further).