I was not familiar with the website coordinationproblem.org when I saw that realclearmarkets.com had linked to an article there. At first I was hoping it would help with my inability to rhumba. But nooooo………
Actually, there was a great article by Peter Boettke about “economic illusions”. He had a great quote from Angela Merkel:
“…as Angela Merkel said, she is “astonished” by the debate and that her pro-austerity position has become controversial. The point is not about saving for savings sake, she points out, “It’s just about not spending more than you collect. It’s astonishing that this simple fact leads to such debates.”
It sounds like she may be the only adult paying attention to the real problems governments are having all over the world. This is worth repeating: “It’s just about not spending more than you collect.” So simple, Obama can’t do it.
Peter Boettke goes on to make another good point, about how government intervention made the downturn worse:
From a free market perspective, the steps taken since 2007 have turned a market correction into an economy wide crisis and then a global crisis. Those steps were anything but “do nothing”, and they were taken first by a Republican President and then pursued further by a Democratic President. We have never given “nothing” a chance.
Give nothing a chance…..I like that. One, two, cha, cha, cha!