Tuesday, February 10, 2009

Some Thoughts and Questions on Economic Issues

What is the Right Frame of Mind?
Do you approach problems like those now sinking the US with an "optimistic" point of view? If you approach the problem with the assumption that it cannot be solved, chances are pretty good you will find a way not to solve it. Conversely, if you are unrealistically 'optimistic', you are likely to miss the mark.

There are two kinds of optimism. The first, optimism that a solution exists. This is the reasonable optimism. The second, an optimism about whatever particular solution you are wedded to.

This second kind is the one that the Obama Administration is exhibiting, lead for the time being by Timid Timothy Geithner: "We are going to take aggressive measures. Aggressive. Take action. Yes, can do. Do now. Action." All said while slowly backing away, preparing for the "Run Away!"

Articles of Faith
If we were lucky, we would be trying to draw attention to the assumptions Obama, Geithner, Summers, and others are making unwittingly. But this Team of Rivals has made clear that they are quite consciously not going to challenge particular assumptions:
  1. No public ownership. The US will not nationalize banks, will not seize control.
  2. Management is just fine. The con-artists who constructed this Ponzi scheme will remain in place.
  3. Tax cuts! This is the Great Republicon Truth and President Obama has jumped right on. But people who are too poor or losing too much to owe any tax in the first place won't benefit from tax cuts. Should be obvious and is, but the tax cuts are the ever-promised kickback to the wealthy who bankroll junkets for members of Congress, provide cushy jobs post-term-in-office, etc.
More to come. . . .

No comments: