There is no free in liberty.


Saturday, October 30, 2010

Rep. Brad Miller (NC-13) - Keep Doing That Chicken with H.R. 5409...


Consider how much money has been thrown at our economy with little measurable positive impact. Then consider the measurable negative impact on our debt.

Keynesians must be in disarray at this point.

It is a shame that Brad Miller is so wedded to an Economic school of thought that refuses to take into account the negative effects of debt. Priming the economic pump doesn't work when the money multiplier has been crushed by the drag of systemic debt.

Miller's Keynesian marching orders, though, have lead him to introduce a new bill, HR 5409.

H.R. 5409, the Residential Construction Lending Act, would create a new residential construction loan guarantee program within the Department of Treasury to provide loans to builders with viable construction projects. Designed to unfreeze credit for small home building firms, the measure would expand the flow of credit to residential builders on competitive terms.

Unbelievable! It was policies like H.R. 5409 that created the sub-prime mess and housing bubble that pounds our economic fortunes today. Even government bubbles pop; that's what they do and when they pop we all feel the pain. Attempting to reflate the bubble as Brad Miller suggests is absolute folly as it costs society more than any gains received and only lengthens the suffering for us all.

Throwing money at a problem without regard to long term impacts simply because it feels good is classic Brad Miller grade school economics.

Keep doing that Keynesian chicken Brad. Fail.


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