With unemployment hovering near 10% for nearly two years now, it should be obvious that the economy is no where near capacity. Yet, many on Wall Street and in the talking-head TV shows continue to maintain that government borrowing is "crowding out" private investment (or going to soon). Um, I don't think so. Crowding out … Continue reading Crowding Out Not Gonna Happen Soon
Day: October 18, 2010
Why the Deficit Increased
The deficit increased over the last 2 years, but it wasn't because of any "surge" or "explosion" in government spending. It was because the real economy, which generates the tax revenues, collapsed because of a financial crisis, as the following graph shows. It wasn't an increase in govt spending. Spending continued to increase at the … Continue reading Why the Deficit Increased
Leadership FAIL: Again
This time I'll outsource the job to Paul Krugman at the New York Times. I don't always agree with Paul, but he's spot on with this. The Obama administration never misses an opportunity to miss an opportunity, especially if it involves banks. Epitaph For An Administration In today’s report on the foreclosure mess, a revealing sentence: … Continue reading Leadership FAIL: Again
