Wednesday, May 11, 2016

Chief Fiction Peddler

But don't be fooled by the radio
The TV or the magazines
They show you photographs of how your life should be
But they're just someone else's fantasy

Recently President Obama has expressed regrets that he has not been able to convince Americans that the economy is actually strong. He is not the first bureaucrat to say as much. The thinking is that the only thing standing in the way of economic strength is confidence. "If we could only get them to feel good about spending, then things would be fine."

This is classic Keynesianism. What we need is more spending. In order to do that, we need to instill confidence.

No amount of propaganda changes the reality that we have overspent in the past and are drowning in debt. Debt needs to be paid back (or defaulted upon) and savings need to be built. Less consumption, not more.

In efforts to perpetuate economic delusion, the president assumes the role of chief fiction peddler.

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