October 11, 2009
Britain's Central Planning Death Panels
October 11, 2009
Free Market M.D.
October 11, 2009
Economies of Scale in Compliance
October 11, 2009
Balan's Challenge
October 10, 2009
The Pleasure of Telling Others What to Do
October 10, 2009
Gonick the Great - and How He Could Have Been Greater
October 9, 2009
More Scott Sumner
October 9, 2009
Not From The Onion
October 9, 2009
Thoughts on a Second Stimulus
If you cut the payroll tax (roughly) in half, where does the Social Security System get the money to pay benefits?
"The bottom line is the bottom line."
Good stuff.
Help me out here. You write:
The economy is in trouble today because of, pardon the pun, false profits.
So, why on Earth would we try to "take these lies and make them true"? If we were reporting fanciful or unsustainable profits, how would we go about re-inflating that bubble, and why?
I agree with your basic analysis about profitability needing to drive the bus, but profit expectations and current contracts have a lot to do with how we reach that point. If profit expectations were unreasonable and they were embodied in contracts (of all kinds, including mortgages) then the remedy is either inflation (preferably through redistribution) or economic collapse, not tax cuts to employers. Or am I missing something?