By Paul Johnson on Sat, 08/28/2010 - 13:13
The consequence of attempting to force economic recovery on a nation is the same as Peter returning to a now broke Paul demanding payment in full, plus interest. In the case of America, Peter is the consequence of a stimulus and other government spending initiatives named Paul.
The probability of a double dip recession is now at 40% as the stimulus and programs like cash for clunkers come home to roost. What is happening is very simple. Stimulus and like programs are followed by short term economic activity which ebbs as fast as it surges. As with any ebbing tide, it recedes further than the preceding flow. In terms of economics, it causes more damage than it creates good. (Read more).
Published on Examiner.
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The consequence of attempting to force economic recovery on a nation is the same as Peter returning to a now broke Paul demanding payment in full, plus interest. In the case of America, Peter is the consequence of a stimulus and other government spending initiatives named Paul.
The probability of a double dip recession is now at 40% as the stimulus and programs like cash for clunkers come home to roost. What is happening is very simple. Stimulus and like programs are followed by short term economic activity which ebbs as fast as it surges. As with any ebbing tide, it recedes further than the preceding flow. In terms of economics, it causes more damage than it creates good. (Read more).
Published on Examiner.
Featured on:
The Next Right.
Red Room.
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