PRESIDENT GEORGE W. BUSH Message Board

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Politics : PRESIDENT GEORGE W. BUSH

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To: Neocon who wrote (617381)	9/3/2004 3:35:37 PM
From: DuckTapeSunroof	Read Replies (2) of 769670

"Perpetual stimulus is not possible, any more than perpetual motion. It only works if it changes the economic environment, not if it is merely a constant." Agreed. But Washington always tries to 'prime the pumps' near the bottom of business cycles... and then never 'mpos up', or restores budget balance (or even, God forbid, budget surpluses) during the up part of the cycle; and the flood of liquidity that has been unleashed in the last few years (starting with much too much in the run-up to Y2K) has laid the grounds for many years of monetary depreciation. "I am attracted to Freidman's idea of having monetary growth track GDP. I fear it might be too mechanical a formula, but I am inclined towards it, if not convinced." I'm convinced that --- although this steady-state approach would not be 'perfect', and would (as all policies would) have some negative externalities... it would still be FAR BETTER a policy at promoting steady economic growth then the inflation-making over-stimulus of the monetary base that we are subjected to now.

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