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Notes to myself, possibly of interest to others.
-- Bill Northlich

Sunday, November 29, 2009

Rosenberg Daily - Pick your Crisis

The latest fiscal gimmick out of the U.S. government is “cash for appliances” and this is no joke — rebates to those who go out and buy “energy efficient” refrigerators, air-conditioning units and other such durable items. This is the sort of short-term fiscal thinking that is one of the reasons why the U.S. economy is going to struggle. These attempts to stimulate consumption at a time when household spending relative to GDP is already at an all-time high are not going to carry much of a multiplier impact. There is a youth unemployment crisis, a skills crisis, a crisis among the ability of small businesses, who have been responsible for 65% of the new hiring in the U.S.A. over the past 15 years — to secure financing for working capital purposes, there is a crisis in terms of a declining manufacturing capital stock, and the programs we get are these old and tired Keynesian attempts at temporary boosts to consumer demand.

--- Rosenberg, 11.27

Billn: Me? doing a "tired Keynesian attempts" post? egad!

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