Economic models are interesting animals. An economist can develop one based on any kind of logic. The model is never tested empirically. The whole population jumps on it as if it was manna sent from heaven. If engineers built a plane that has never been on a test flight, would the airlines buy it and put passengers on it? Probably they would pass on the
opportunity. The pretense of knowledge pays more than does actual
knowledge.

Where does government economic policy come from? It is mandated in
the Full Employment Act of 1878. O.K., but how is the plan of intervention decided upon? Any economic intervention is going to be based on the needs of the world’s most politically powerful citizens. Who might that be in today’s world? Those are the folks who already have most of the worlds wealth and resources. Does it not make sense, that our plan
for economic prosperity would be the one which would enrich them the
most?

Build it and they will come? Did they come? No they have not. So, all of the worlds resources are now focused on preventing any type of bear market in stocks. A bear market will take the economy with it because their is no genuine economic growth that has been caused by anything other than high asset prices.

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