Out with the old, in with the new is what happens in a recession. Government intervention prevents this process from occurring. When an economy slows down the damage being done is clear and obvious. The in with the new is occurring but it is invisible in the present. Government programs are initiated for the purpose of “saving the economy.” Because the in with the new part is stifled, the economy never recovers. There are other issues but efforts at stimulus guarantee a recovery will not occur and that a recession much worse that the one that was supposed to be avoided will occur and will be worse than the initial problem.
The recession that began in 2008 was ostensibly fixed, except that it really wasn’t. The new recession that is beginning now will be much more devastating. Economics only deals with simple issues that are based on incentives and human behavior. The current situation is simple and that is all there is too it.
Sweet Suzie’s Kool-Aid is a fine Curbside Jimmy tune.
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