This recession is not a failure of market economics. It is a reassertion of market economics after a decade in which we paid ourselves more than we were producing, and funded it precariously and temporarily by complicated credit instruments that it took a while for the market to rumble.As for this side of the Atlantic, I don't agree with a lot of what Nick Gillespie has to say in the Journal today, but this is spot on:
Taxpayers now guarantee some $8 trillion in inscrutable loans to a financial sector that collapsed from inscrutable loans.What's the solution? "Stimulus"! As the Instaprof says:
This is not so much a stimulus, as a massive transfer of wealth from the politically unconnected to the politically connected.And you'd be amazed at who's connected these days:
"You know, I'm concerned about the size of the package. And I'm concerned about some of the spending that's in there, [about] ... how you can spend hundreds of millions on contraceptives," House GOP Leader John Boehner (R-Ohio) later said.Indeed.
"How does that stimulate the economy?"