More on hysteresis:
Imagine having a fever so bad that it permanently raised your body temperature. Now imagine a period of unemployment so bad that it permanently reduces our economy’s ability to produce things and employ people. That’s hysteresis — the long-term scarring of our economy from periods of short-term unemployment. I’ve discussed this . . . → Read More: Hysteresis and the Pretense of Knowledge
University of California (Berkeley) economist Brad DeLong took my late-in-life education on economic issues to a new level. I’ve plenty more to learn, of course, but I enjoyed his discussion.
Here’s a snippet from his article in the Seeking Alpha web site:
In such a setup, the conclusion of Mankiw and . . . → Read More: Monetary vs. Fiscal Policy
From Paul Krugman:
Watching Europe sink into recession – and Greece plunge into the abyss – I found myself wondering what it would take to convince the chattering classes that austerity in the face of an already depressed economy is a terrible idea.
After all, all it took was the predictable and predicted failure . . . → Read More: Keynesian Tautologies
Was it Popeye’s friend, Wimpy, who kept asking for a hamburger on credit? Today’s credit markets are anything but robust, with reduced demand and supply for borrowed funds. Always eager to find obscure terms for modern dilemmas, economists refer to this condition as a liquidity trap. With a little prodding from Facebook friend and . . . → Read More: I’ll gladly pay you Tuesday for a hamburger today
Freidrich Hayek and the Austrian school of economic policy argue for a laissez faire approach to the economy – emphasizing individual actions and criticizing government intervention. John Maynard Keynes acknowledged that economies could, over time, correct themselves, but argued that government had a responsibility to intervene and stimulate demand when the economy is in . . . → Read More: Keynes vs. Hayek
Late last month, President Barack Obama signed legislation that will cut taxes and provide credit help for small businesses. It is yet another step that the government is taking to continue programs that spur job growth in the U.S. economy.
The Small Business Jobs Act is now the fourth jobs measure that Congress has . . . → Read More: Obama: More Tax Cuts for Small Businesses
Continuing the theme of my recent posts. This from Troy Schwensen at The Global Speculator:
Australia’s Prime Minister, Kevin Rudd, has recently delivered an address to the nation providing details on his second stimulus package. Within this briefing, there was a number of sniping remarks about the so called “failure of free markets”. This . . . → Read More: Free Markets Work
The G-8 is composed of the U.S., Japan, Germany, France, U.K., Canada, Italy and Russia. Representatives met over the weekend in Lecce, Italy to begin crafting an agenda for when a broader set of leaders meet on July 8-10.
The group acknowledged that they are now considering how to back out the swift rescue . . . → Read More: The G-8 Cites Recovery Signs
C.S. Lewis’ short but masterful The Great Divorce is about Ghosts in Hell who journey by omnibus up through a crack in the earth to meet Solid People and hopefully be guided into the mountains. As the Ghosts become substantive their feet are pricked by the sharp grass. Only a few overcome their problems and . . . → Read More: How To Intentionally Exacerbate The Greater Depression
Politicians have jumped on board the stimulus bandwagon. It would be nice if they would think for a change. . . . → Read More: The Audacity Of Actually Thinking