Alan Blinder on Gridlock and Fiscal Policy

Alan Blinder, the ex Fed genius who thought up the whole cash for clunkers scam which placed a big burden on poor people, recommended more hiring by congress as one of his solutions to the weak recovery. 

The problem about Blinder and other busy bodies who try to micromanage the most complex system ever, is that they think of the recession and lower GDP growth is something that governemnt must fix. 

The recession was not the problem, the recession was the first step to recovery.  A short deep recession, followed by strong growth is a good thing.    All the intervention in both monetary and fiscal policy will end up making this recovery both weaker and longer than it needs to be. 

The biggest truth that he says comes at the end, "there are those who think that Gridlock is a good think.  I don't think Gridlock is a good thing." 

In other words, government is the solution. 



More
Alan Blinder: Our Fiscal Policy Paradox
Alan Blinder on a very premature piece on How the Great Recession was brought to an End
Alan Blinder on why Obama is right and why we should raise taxes and use the revenue to pay for unemployment benefits
Leading Economists:  Why Blinder's Cash for Clunkers was a dud

Comments

Popular posts from this blog

October retail sales come in strong, especially auto sales

Tea Party Buffalo Pictures

How to spot a fake Tea Partier