With all of the talk about a “measured” reopening of America, I am reminded of the “German Economic Miracle” after World War II. Against the advice of all the economic “experts,” Ludwig Erhard eliminated all wage and price controls put in place by the Allies during the occupation after WWII. The results were almost miraculous.
What we really need is for government to get the hell out of the way and let the free market decide how to reopen the economy.
Do you think the government should have sent out stimulus checks?
Do you think they should have closed down businesses in the first place?
I agree about the free market being a better solution, but you’re making a poor comparison.
The German economic miracle had a lot to do with a thrifty, educated, hard-working population that needed nothing more than to have their infrastructure rebuilt.
That said, this is a really really bad time to “stimulate” the economy. Bona fide social safety net spending might be a good idea. . .
BUT our economy was seriously over-stimulated to begin with. At any given time there are weak (poorly managed?) companies that are sure to fail the next time a string wind blows.
Evidence suggests just before the COVID shutdown, that was particularly true. (Too many airlines, too many companies whose paltry earnings did not justify their exhorbitant stock price etc…)
It never makes sense to “stimulate” such companies, and the fact that a strong wind blew does nothing to change that.
The gov’t should never be in the busy if propping up such cardhouses. Any money that truly was intended as “stimulus” should have waited.
Any gardener will tell you:
feed and water the garden only after the weeds are gone.
The answer to the second makes your first question unnecessary.
Nope and Nope.
If they had issued guidelines and allow companies to follow them or choose differently, there would have been no need for stimulus checks and beyond that, the trillions they’ve spent on stimulus.
