Friday, February 13, 2009


(via the Economist, HT Russ Roberts)


thinking said...

Too doubt people will go where the money is.

Where we can hope this stimulus is different from the bubble that caused the economic crisis is this:
the housing bubble created false wealth on paper; nothing of lasting value was created. The stimulus will at least invest money in projects that will create lasting economic value, such as schools, infrastructure, energy technology, a digital electric grid, health research, etc. I'll take that any day over the bubble.

Then there's the issue of who gets the money; once again, the stimulus will give far more lasting wealth to the middle class.

So I'll take the stimulus any fact, my only fear is that it's not big enough.

thinking said...

Another way to look at it:

I'd rather have an economy based on education, research, modern infrastructure, clean energy, opposed to one based on flipping houses, which was what we had.

Sadly, we lost sight of what real wealth creation was all about, and now we are all paying the price.