There is no way that this is wrong, but why in a Capitalist economy does the federal Government always represent the Guarantor of last resort? Bad Investment Counsel, Poor Investor, Bad Investment–no matter–the Government will cut your taxes for the total of the loss. Individual responsibility can be avoided at all Costs, and I await the Tax regulation where Those who are fired can deduct loss of future Income from their Taxes. It wants for Viability in a time where Jobs are scarce, and the urge is to blame the Government for all things. I would run a Test Case for the Return of back taxes because of future losses from loss of Job, if I had a Job Then or Now.
Frederic Mishkin may be stirring the waves of that famous ‘Tempest in a Teapot". He holds that the Federal Reserve still has multiple means to induce Market behavior, even though Most of Us cannot see it. Mishkin uses the undefeated Concept of comparing Fed action against a lack of action on the part of the Fed. I ask myself always when this reasoning is employed: What would have actually happened if the Fed had not interfered? Would the Situation have been that much worse, or would a quickly-operating Market have already placed this glitch behind Us? All I witness is a bunch of Managers whining about what they have lost, in order to get in line for Fed Cash, rather than Everyone moving on.
I might utilize Mark Perry’s line of argument to discuss the whole of the current American economy. It would be interesting to hear what Joseph Schumpeter would think of current federal economic policy. The Federal Reserve was originally founded to aid the cyclic flow of funds from the Cities to the rural areas where needed in Times of Harvest and Planting. The entire Concept was the adequate flow of funds in the proper direction when needed. That Need has disappeared over the Years, and the Regional Federal Banks have lost some validity. A central economic coordinating committee seems necessary, but is it important that it be composed solely of Bankers? My entire Point must be that We are afflicted with a wide assortments of outdated federal mechanisms to assault the economy, and it might be Time for Creative Destruction. lgl