Wednesday, June 6, 2012

I've seen this movie before

Martin Wolf, by way of DeLong:
All one needs [to recreate the 30's] are fragile economies, a rigid monetary regime, intense debate over what must be done, widespread belief that suffering is good, myopic politicians, an inability to co-operate and failure to stay ahead of events.

Seriously though.  How did we get here? How did we get to a place where our policy makers, each one sitting on a pile of cash and a safe job, speak of the virtue of suffering that leaves them untouched?  How did we get to a place where keeping inflation under 2% is far more important than keeping people employed? How did we get to a place where pundits who make predictions that are clearly, unambiguous, and wrong can keep selling the idea that we must inflict more pain?

I've seen this movie before.  It went poorly from about 1928 up to the mid 30's, and then things really went to hell.  Anybody feel like hitting pause?

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