It is often sadly remarked that the bad economists present their errors to the public better than the good economists present their truths – Henry Hazlitt
I cannot help but think about @claudiasahm's recent article regarding the Sahm rule and her proposal that when triggered it should automatically start payments to people because it means a recession is in progress. This seems exactly the type of intervention that can only cause more problems than existed prior, and as defined, seems completely open-ended. I guess her term as a Fed economist taught her that intervention is the best solution to everything.
As Milton Friedman warned us all, there is nothing so permanent as a temporary government program. Virtually every emergency measure the Fed has instituted over the years is now a part of the ordinary toolkit, most notably QE.
Alas, I fear that until such time as the system completely collapses, interventions will simply occur more and more frequently in an effort to prevent that ultimate outcome.
I cannot help but think about @claudiasahm's recent article regarding the Sahm rule and her proposal that when triggered it should automatically start payments to people because it means a recession is in progress. This seems exactly the type of intervention that can only cause more problems than existed prior, and as defined, seems completely open-ended. I guess her term as a Fed economist taught her that intervention is the best solution to everything.
As Milton Friedman warned us all, there is nothing so permanent as a temporary government program. Virtually every emergency measure the Fed has instituted over the years is now a part of the ordinary toolkit, most notably QE.
Alas, I fear that until such time as the system completely collapses, interventions will simply occur more and more frequently in an effort to prevent that ultimate outcome.
happy easter