Economic populists have become skilled at causing economic calamities while escaping the blame. Instead, it’s the non-populists that end up picking up the pieces while getting the blame for the unemployment and wealth destruction that follows in the wake of populist economic policies.
The Fed and the government have gone to great lengths to prop up home prices. But it seems a bit odd to try to increase the cost of a basic necessity like housing. Why not do the same with food and clothing?
The Keynesian multiplier would have us believe that economic growth can come from an increase in demand and spending. But if we look more closely, we find there is never a shortage of demand, and what an economy really needs to expand is more saving.
A recent report commissioned by the prime minister of Iceland calls for limits on the money supply through ending fractional reserve banking and deposit insurance. Unfortunately, the report also calls for nearly unlimited control of the money supply by the central bank.
