The short term and populist politics our politicians are used to practise is delaying the end the global crisis. They are not the only factor of the solution, but their fear to face the real problems of the economic system is causing so much pain in our societies. At the moment, the only big action they have taken is to increase the public expenditure as it is an easy and popular policy.
Etiqueta: Keynesianism
«Free market could be a son of a bitch but it is our son of a bitch»
Of course this is not a real quote from one passionate liberal economist, but it could be. At least if you read the statement The Cato Institute has promoted to oppose to the economic package implemented by the new American Emperor.
«President Obama says that economists from across the political spectrum agree on the need for massive government spending to stimulate the economy. In fact, many economists disagree. Hundreds of them, including Nobel laureates and other prominent scholars, have signed a statement that the Cato Institute has placed in major newspapers across the United States».
To showing their intellectual power, they have published an advertisement in the main US media pointing out that they do «not believe that more government spending is a way to improve economic performance». They argue that other big government interventions did not rescue America from the deep economic crisis. They prefer to repeat the old liberal recipes: «To improve the economy, policy makers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth». It is wondeful, but only one humble thinking: Who invented the ‘subprimes’? Regulatory Authorities? Or the happy liberal banker pursuing his prosperity and the richness of every man? I the State do not pays the huge bill, no banker is going to be generous.