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 In ongoing discussions, there's significant debate regarding whether the Federal Reserve should cut interest rates during an election year, given the potential for these decisions to become politicized. It often seems like a partisan struggle is underway, with one side hoping that the economic challenges stemming from bipartisan fiscal policies and the Fed's accommodative monetary policy will either manifest or be averted before the election.
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