I have a feeling that the economy's going to improve at some point, stimulus package or not, because that is The Way of Things-- the Way of the Force. It's a bit like global warming, really: a massive cyclical phenomenon might be helped or hindered by human activity, but the overall cycle won't be fundamentally affected.*
That said, I think Republican John Boehner was right to call the Dems out for the hypocrisy of drafting a package that's over 1000 pages in length, then insisting on voting on it (a) before the public has had a chance to digest and debate it, per President Obama's promise of a 48-hour public review of legislation; and (b) before the legislators themselves have had a chance truly to digest and debate the package.
At the same time, I think the GOP expended its credibility, apropos of fiscal discipline, over the past eight years (and, as many have pointed out, GOP hero Ronald Reagan wasn't exactly known for small deficits, making one wonder how the GOP ever became associated with fiscal discipline), which makes it rich for them to be harping on the Dems' spendthrift ways. Oh, sure: the GOP has the right to harp on that issue (we don't want to commit the genetic fallacy here), and they may even have some valid points, but can the public be blamed for not wanting to hear their side of the story?
Because the economy is subject to cycles, I think it's simply a matter of time before attitudes and outlooks become more positive, which will affect perceptions and thereby affect the stock market and other aspects of the economy. You might scoff at this admittedly glib and unscholarly assessment of a dire situation, but judging by the discord I see and read about in economic and political circles, no one else seems to have a better lock on things than I do.
*You might respond by noting that, unlike climate, economic reality is entirely a function of human activity. That's true, but it's also true that the global economy is no less a massively cyclical phenomenon for this reason. US attempts to change the tide may prove fruitless simply because of the sheer momentum inherent in the concerted activities of nearly 7 billion people.
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1 comment:
It looks like the Mayans may have hit 2012 dead on. If too many governments start to topple during this economic crisis (besides peaceful Iceland) and food becomes scares (due to the likes of drought, flooding, high fuel and freight prices, etc.) things could get really ugly fast, and that isn't taking Iran or Russia into consideration.
John from Daejeon
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