Wednesday, November 26, 2008

Fiscal conservatism is dead! Long live fiscal conservatism!

Fiscal conservatives are beside themselves with delight as they now have an have an absolute vice grip on policy. They’ve had it for years. The hard money crowd has seen their leader resurrected and installed back in his throne with Volker.

Under this team I am skeptical that we will get the kind of demand stimulus that is needed. Obama's first term will likely fail to achieve its economic goals. As a result, he will be blamed–not because of the fiscal conservative policies of his administration–but simply because he is a Democrat. Thus, you will see the “tax and spend” rote criticisms being hurled at him.

Paving the way for even a more extreme version of fiscal conservatism.

Fiscal conservatism is dead! Long live fiscal conservatism!!

P.S. Argentina proposes infrastructure spending equal to 10% of GDP


googleheim said...

argentina needs trains again after Menem and his neocon cronies ripped them out in the 1990's.

it would be a really cool ride to go north and south in argentina by train and help spread out the BA sprawl.

what we need is not a pipeline from Venezuela to Argentina ( ripping through the amazon )

what we need to build is the demand for Americans to go south not by plane but by car and train and dump their pocket change into the local economies from here to there ( AND BY PASS ALL THE MULTINATIONALS WHO CONTROL THE SUPERFICIAL SIDE OF TRAVEL TO SOUTH AMERICA ) and get a superconducting train from panama down the Andes to Chile and Argentina

that would be a really cool ride, even if it was ONE way south only

googleheim said...

So Obama better hedge a contrarian position of all sorts with several types :

supply side
demand side
and anything else that is possible.

If he does not attack the problem with true multidisclipinary agility backed by a true Cartesian and contrarian doubting of just one or the other

then Obama will not be making a full press effort such that he is exerting MORE than what is needed, though we do not know what the amount is ....