He who places his hope on thee, O Virgin all-glorious, will prosper in all he does.

Inscription on Byzantine coin during reign of Romanus III

Friday, June 06, 2008

Not Another Useless Stimulus Plan, Please

President Bush is weighing more actions to stimulate the economy. Don't get me wrong. I liked receiving the money from the first tax "rebate", even though its questionable policy value resided in deficit-building and election-year PR. It added nothing to short-term stimulus or long-term growth.

Economic problems are solved through adjustments to entrepreneurs' unsuccessful plans. Policies should be designed to encourage flexibility and speed in making such adjustments. Alas, such policies may involve homeopathy rather than handouts and wouldn't be popular in election years.

No comments: