Thomas Sowell has a message that could be directly addressed to Billy Bob English, who as we speak is warming up his printing presses to “stimulate” the local economy by debasing the local currency (Story here). Says Sowell,
“The economy today has some serious problems but things are not desperate, though they can be made desperate by politicians.”
Too true. But when has that ever stopped a politician? They act when they shouldn’t, and don’t act when they should -- and the answer to “why the hell they do that?” is impossible to unravel.
Read Sowell’s ‘"Jolting" the Economy’ while you ponder the question.
UPDATE 1: Danyl at the Dim Post comments on the knob’s “brilliant plan.” The title gives you the clue: Then Lancelot, Galahad and I jump out of the rabbit . . ..
UPDATE 2: Libertarianz deputy Dr Richard McGrath says “Butt Out Bill!”
Libertarianz deputy leader Richard McGrath said today the $7 billion spend-up announced by Finance Minister Bill English was both detrimental to the prospects of economic recovery, and damaging to the moral fibre of New Zealanders.
"This golden shower of handouts will be funded by churning out yet more worthless paper notes – debasing the currency, and punishing those who try to put New Zealand dollars aside for a rainy day – or by borrowing, so that future generations of Kiwis are burdened with debt."
"These 'rescue' packages undermine the lessons taught by the free market," said Dr McGrath. "If you lend money to high-risk customers such as sub-prime mortgage holders, or sink money into dodgy investments, there is a significant chance of losing some or all of it."
"Forcing the taxpayer to rescue incompetent banks and investors stops the latter from learning from their mistakes and encourages more of the same foolhardy speculative behaviour," McGrath added.
"The best thing the government could do is step aside and let the banks and businesses that have failed their customers - and the investors and entrepreneurs that have failed themselves - quietly close down, so that valuable time and resources can be allocated into more productive activities."
"Rewarding failure is irrational; stealing from taxpayers to reward failure is unjust. Libertarianz calls for an end to this Keynesian madness."
UPDATE 3: Cox and Forkum encapsulate the response: