Tuesday, November 25, 2008

Dangers of "Jolting" the Economy

Thomas Sowell has a column today at which focuses on President Elect Obama's admission that the economy needs a "jolt". While this may seem to be true, Sowell points out that there will be negative consequences to such action. This is part of what he writes:

Much as we may deplore partisanship in Washington, bipartisan disasters are often twice as bad as partisan disasters-- and this is a bipartisan disaster in the making.

Too many people who argue that there is a beneficial role for the government to play in the economy glide swiftly from that to the conclusion that the government will in fact confine itself to playing such a role.

In the light of history, this is a faith which passeth all understanding. Even in the case of the Great Depression of the 1930s, increasing numbers of economists and historians who have looked back at that era have concluded that, on net balance, government intervention prolonged the Great Depression.

I encourage you to read Thomas Sowell's column in its enterity: "Jolting" the Economy

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