Liberty MavenRobert Higgs supports “Do Nothing”, rejects the stimulus
February 14th, 2009 11:08 pm | by Marc Gallagher | Published in Bailouts, Big Government, Debt, Economics, Free Market, government spending, Money | 1
Robert Higgs gave his views on the economic stimulus package on Fox Business news. He is yet another economist supporting the “do nothing” approach and letting our financial system adjust to its appropriate levels.
More wise words…
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February 20th, 2009 at 1:43 am (#)
There’s an old U S Army maxim that not only did Patton and MacArthur use, but is used by every executive and manager who is looking out for his career–indeed. it is an American maxim: Do something, even if it is wrong.
Indeed, doing nothing is a sure fire way to political suicide as the public at large, being this kind of American, will not tolerate an executive or a business or a government that does nothing about what appears to be a crisis, even though the doing of nothing may be the best solution.
There’s no such thing as pure non political economics–there is only political economy, where the political aspects (such as that political perception of motion or activity in the government to get the thung solved) trump the pure fiscal statments and finance sheets.
And as a lot of life is allabout perceptions or what is called sentiments, the political again trumps the purely economic–the stock market ,it is said, runs on rumor and morale, not on rationality or any tempered sentiments.