Monday, July 9, 2012

Comment To "Why US Economic Policy Is Paralyzed" On Real Clear Markets

My short comment to Real Clear Markets, "Why U.S. Economic Policy Is Paralyzed" by Robert Samuelson:
Deficit government financing in recent times is used to redirect money to taxpayers as opposed to previous times when it was used for wars or major capital projects.

Payments and subsidies to citizens and and companies changes their incentives and it is the change in incentives that distorts private investments and work efforts. The taxpayer payments and subsidies also distort market based priced signals.

Unintended incentives along with distorted price signals have created economic inefficiencies, slowed the US economy and are keeping the economy and employment below long term trend.

No comments:

Post a Comment