- Sunday, December 20, 2009
- Sunday, December 6, 2009
- Sunday, November 8, 2009
- Sunday, October 11, 2009
Do words matter? If the promises just made by two of our most important economic leaders count for anything, our future prosperity is assured.
David Axelrod is the president's top adviser. Tim Geithner is the secretary of the Treasury. Both just said the magic words on major networks to assure our economic recovery: Jobs are more important than the debt and deficit.
Historically, our government gets cold feet at this stage in an economic recovery. They get nervous about the scary "debt" and "deficit" numbers and stop doing exactly what America needs for jobs and prosperity.
To repeat the major theme of this column, we the people already have created all of the real wealth we could possibly desire: houses, cars, vacation destinations, hospitals, etc. Everything money can buy exists in abundance. We just need the money to buy it.
The government's simple job is to print enough money and inject it into the economy so that we the people can use our own wealth. For the last year, the government has been spending freshly printed money at a record pace. Because the banks and the states have taken our federal money and sat on it, we still have high unemployment. But the federal cash is out there, and will work like a blood transfusion to reinvigorate us.
The problem in past recoveries is that around now, the Chicken Littles start their doomsaying hue and cry about the monster numbers that will eat our children. Though their dozens of predictions throughout history have been wrong about 100 percent of the time, they somberly threaten us that the big scary debt and deficit numbers are unsustainable (their new favorite buzzword).
Their "cure" is to raise taxes and curb spending, which works like bloodletting on a patient who just got a transfusion. It led to the triple-dip depression of the 1930s and the double-dip recession of the 1980s.
Not this time, said David and Tim. They have learned from history that nothing is more important than creating jobs, and will brave the wrath of the doomsayers so America can work again.
We are finally using the Fed for its intended purpose. It's supposed to keep enough money flowing for us to use our real wealth, but not too much to create inflation.
Sadly, the Chicken Littles always cry "inflation -- eek!" even as deflation lurks. They want the Fed, in their words, to "take away the punch bowl when the party gets really going."
This stupid image ticks the heck out of me. Rich, old farts living off of their lavish bonuses and dividend checks characterize America's workers, who just want jobs so they can work hard and earn what they themselves have already created, as drunks who need discipline. Wrong! The Fed's new money is the life-giving elixir of the economy.
And America now promises to have enough of it. Geithner's and Axelrod's words to me sounded as sweet as the old cavalry bugle -- the sound of imminent rescue, coming over the hill to save us.
In our economic war, I'm glad to see we're staying the course.
Rick Boettger was a business professor before writing his book and hosting a 25-state talk radio show on political economics. He has done tax and financial advising in Key West since retiring here in 1996. Questions, information and differing opinions are welcome at rd.boettger@gmail.com.