Sunday, March 15

Must Things Get Worse Before They Get Better?

posted by Doug Reich @ 1:44 PM
Post on the absurdity of the idea that the "boom-bust" cycle is inevitable.

Frequently, you hear Obama and his ilk make the claim that economic conditions are "likely to get worse before they get better." Now in the practical sense that his administration's policies are designed to destroy the economy, I agree with them. However, those making this claim are the ones who are in control of the policies and therefore they are unlikely to believe their polices are the cause. In other words, they appear to be making this claim on the premise that it is a metaphysical absolute that things must get worse before they get better. It's almost as if they believe there is a mystical force shadowing the nations' economy which necessitates recession and malaise and which can not be understood or resisted.

Is this true? Must things get worse? Also, many in the financial industry and elsewhere are absolutely bewildered by Obama's plans which fly in the face of logic and history. Why would he propose such policies?

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