I wondered What I would write today, then came across this Piece by John Quiggin. I cannot say much about his commentary except possibly to put it in context. The element I would advance is that social mobility means nothing at all if the Unemployment rate for February stands at 9.7%. I could discuss suppression of real Wages, over-taxation for Welfare programs which are still basically under-supplied in consideration of the Demand level, and the focus on destroying Savings of the Unemployed prior to engagement of such social welfare programs. The only real things that have trickled down have been the Costs of Living and bills of every kind and nature. What I dislike most about the modern economy as defined by Many consists of the creation of the Top-Ten-Percenter Lack of Suffering Recession, where the people who brought Us the Recession need not endure any duress; it seemed to means something more with a more general community spirit, when Everyone could curse because Times were bad!
I would like to state for the record that this Piece from James Galbraith makes a lot of sense, though I disagree with it in major and main part. I will now make a good share of my audience sick, by relating it to Hunting; it is all the same thing, though there is a real difference between shooting a Teal, and shooting a Canadian goose. The Powder, Shot, and cost of the weapon are basically the same. The cost of the license and Permits are basically within the same range. Hunting Guide and Lodge rentals remain basically the same, while Transportation stands at the same applicable level. Those who have never done anything so gross as shooting your Supper, I will explain there is a massive difference between the two birds. It is regrettably much the same with Stimulus; you Spend the same whether you go after the big birds, or the small ones; the only difference being you need to supply the small birds in Stimulus.
I have a short rule of thumb, which states that if the Stimulus does not reach the individual household, it is not actually Stimulus. One has to bribe the households to Consume, and when it gets bad, to even pay their bills. Underwriting of Business Profits will only protect the Businesses, generating neither further production or greater Hiring; they even use the Recession as excuse to hoard their Cash reserves–refusing Dividends and payment of Taxes. It is a strange fact that every Government which tried to make things easier for Business drowned in their own debt, while every Government which promotes decisive taxation policy and constrained Spending eventually winds up in a Boom. I wish I could develop the Recovery times and rates of expansion among several Countries at the same period of time, but it seems that all Governments swing in the same direction Worldwide at the same time; periods of Good Government are followed by periods of poor Government, so there can be no serious comparison. I will suggest that 5 years of heavy Tax policy will leave the Government in better shape, than will 5 years of deficit Spending. lgl