How often do you listen to Carnival barkers? My entire study of economics leads me to suggest that only a relatively set Interest rate of around 4.25% for the Overnight rate is the only sustainable rate with a steady rate of growth for the economy; the Fed maybe having a Percentage point to play with for or against. Higher than this rate causes Business to find it impossible to get the Operating Credit to do business. Lower than this damages the ability of all Investors, not just Depositors, to get a sound rate of Return; necessary for themselves to be a full participant in the economy. Taylor wants a sliding scale when there needs to be relative constant placement of Rates, while Meyer wants to give Business money, though there is absolutely no indication that Business would ever pass it on to Others. Bernanke made a reputation on claiming the Fed of Depression years was too Static in Policy; I must accuse Ben of being too flighty in applying Policy. Time will probably show that We were all Wrong!
The Nobel Prize Commission chose again to highlight current research into the latest economic problem–Unemployment. It is not that I think the Three do not deserve it; they have performed a profound level of research; I will tell the Reader now that if they do not pursue the Tyler Cowen link, they will miss an excellent experience. I differ from the Three Prize Winners in that I do not want a kick-start to the housing markets, before there has been a massive reduction in Housing prices. The Mortgage Crisis was caused by falling Home prices, and I would not see them replaced where they would fall again under economic stress. I personally would reintroduce a Selective Service Draft solely for military training, and run up to two million kids through it; it would build up necessary Reserves, and offer Trainees some Concept of military service other than the common liberal contempt. Such Thinking would present actual Household Income to a vast number of currently unemployed Youth.
Business and Politics will never truly invest in Labor, though they spend huge amounts at every other idiot thing. Millions could be employed and learn vital labor skills cleaning up and beautifying our environment. But Business and Politician will not consider anything which does not make some Business sector widely-inflated Profits. We have lost the sense of Community which got Us through the Great Depression. The attitude of the Criminals of the 1930s have migrated to the Business mentality. Politicians should learn that they can Vote for something, even when their Contributors do not gain from it; all it takes is to be the Right Thing to do. We will not likely see such behavior in our lifetime, though We might see the downfall of our Way of Life. lgl