02-23-2017, 03:17 PM
(02-22-2017, 11:11 AM)TeacherinExile Wrote: ... I have suggested before on the previous forum that there is a singular, deft, and bold stroke that either the Democrats or Republicans could have proposed before the last election, a fiscal stimulus that would have accomplished two objectives: 1) provide an immediate boost to GDP growth, perhaps even achieving the elusive "escape velocity" to lift our economy out of its "secular stagnation," and 2) weds a huge segment of the Millennial cohort to the political party brave enough to enact it.
The entire fiscal stimulus loop has been analyzed to death. Yes, it gives a huge initial boost, but triggers a lot of inflation too. Unless the stimulus also creates huge gains in productivity, it will be subsumed in short order. Of course, that kind of stimulus can be enacted, but rent-seeking tends to kick in early, making it far less than what it should be.
I certainly don't trust Trump or his cronies to do this anywhere near right and the Dems are cowards, so I doubt it will happen.
Intelligence is not knowledge and knowledge is not wisdom, but they all play well together.
