the counter-argument is that interest rates
Posted on: April 15, 2012 at 07:44:33 CT
and prices move counter-cyclically on their own without government intervention and act to restore econ activity naturally without incurring huge fiscal debt or debasing money with extreme monetary policy as has occurred on this occasion.
in today's economy where banks are insured, unemply insurance prevails, there is food purchasing support, most households have 2 earners instead of one, and other safety net features are in place, gov interventions should have to be less extreme than before, not more extreme.
moreover, the argument continues in claiming that gov actions have been so over the top in this current situation that for the first time it can legitimately be said that a set of remedies has actually worsened an economic downturn in a serious and measurable way. which might be a first for an american economic recovery program.
Edited by kbit at 09:02:33 on 04/15/12