About the morality of saving

Summary:  Suddenly everybody has got financial religion.  End the deficits!  Pay down the debt!  Increase saving!  What does this mean for our future?  My guess:  not much.  Except to delay necessary action.  This post has some exaggeration for emphasis. Bad news for the faithful:  saving is not like chastity or fidelity.  Every young girl can be chaste.  … Continue reading About the morality of saving

Some thoughts on the political effects of a long recession

Summary:  Third in a series looking at the future of the US and global economy.  The earlier chapters are , Hidden truths about the state of the US economy and What lies ahead for the US economy? the global economy? Consider three scenarios:  good, blah, and bad.  Here's the bad. Slowing US and global economic activity as the … Continue reading Some thoughts on the political effects of a long recession

Keynes comments on our new-found love of austerity

Summary:  We're living in an time of deja vu.  Our Af-Pak War repeats the mistakes of Vietnam; Europe's economic policy repeats mistakes of the 1930's.  Slow and stupid are the two sins God always punishes. (1) Mark Thoma (Prof economics, U Oregon) coined a term for the advocates of austerity now (i.e., increase savings during a recession; they … Continue reading Keynes comments on our new-found love of austerity