Wednesday, November 13, 2013

Mutilated Economy - New York Times - Paul Krugman

"The public spending most of us object to is the flagrant waste and inefficiency that is inherent in public spending, the accountability loop is far to defuse in government – this is just the reality of a big organization. Show us clear accountability – clearly stated objectives, metrics and indicators, and objective reporting – then reach in our pockets." 

http://www.nytimes.com/2013/11/08/opinion/krugman-the-mutilated-economy.html?src=recg

Curious that the organization singing the litany is the one that has most rewarded the biggest culprits in the great recession trainwreck, with quantitative easing policy the gives money to banks to provision liquidity to corporations with fat balance sheets. Aggregate demand is built on the backs of people buying things with earned (and or free) money, as opposed to more credit to an already over levered economy. Your comments on infrastructure are most welcome, the one thing government can manage marginally competently is big, long lasting, stable infrastructure. The reason why human capital is under considered, is because no one has ever come up with a way to value it, the supply demand analysis has left many of us “supply siders” blind-sided, we need a value calculation on latent human potential and the resulting lost revenue calculations – then you would likely find some friends on my side of the economic debate; perhaps this document will help. There can be little argument however, that the nearly pan western world 1980 economic restraint and an the effort for responsible spending set up the 25 years of joy prior to the great recession, we can only inflate away so much debt – in long run we may all be dead, but someone will still have to pay. Infrastructure is investing, as opposed to spending and money is cheap - so sure lets build as much as we can as fast as we can, lets also invest in human capital there are great returns there. The public spending most of us object to is the flagrant waste and inefficiency that is inherent in public spending, the accountability loop is far to defuse in government – this is just the reality of a big organization. Show us clear accountability – clearly stated objectives, metrics and indicators, and objective reporting – then reach in our pockets. 
  
Discourse on the great recession

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