Comments (9)

• Cramchakl

  So we've been stimulated? Time to quit using the picture of the pot of decaf coffee and switch to a picture of a "middle class" person unable to purchase a loaf of bread.

  Published: July 15, 2009 10:16 AM

• End the Fed

  So all the newly printed Non-Federal Non-Reserve Notes (including the first $700 billion) are finally reaching Main Street? I'm surprised it's only 3.3% and not 20% or 50% or 1000% or more like Zimbabwe or Weimar Germany or something. There's been no "recovery", just a bailout of the malinvestments that should have been liquidated. That will cause more harm for everyone else because the more Non-Money they use to bail them out, the less valuable eveyone else's is. So it helps the malinvestments at the expense of everyone else.

  Published: July 15, 2009 11:54 AM

• Mac

  The stimulus hasn't even gone beyond $60billion from what I've heard. We've still got $700billion that are backloaded, meaning they'll start kicking in by 2011-2012.

  I bet what we're seeing is the monetary bit by the FED.

  Cheers

  Published: July 15, 2009 12:44 PM

• Jonathan Finegold Catalán

  http://www.msnbc.msn.com/id/31548130/ns/business-personal_finance/

  Published: July 15, 2009 12:54 PM

• Wayne

  I'm still a neophyte at economics in general so how does the Austrian school respond to statements like:

  "Anytime you can put money in someone’s hands to pay their bills, those dollars have an immediate, positive impact on consumer spending. Even in this recession, consumer spending remains the biggest driver of economic activity."

  from the above linked MSNBC web site? My limited understanding is that consumer spending is the wrong way to measure the economy, is that right?
  But how can you even converse with someone when they use a different measuring stick?

  Seriously I'm not a troll or looking for flames. I'm asking an honest question, and humbly exposing my ignorance on a subject the people here seem to be experts on. So serious answers only please.

  Published: July 15, 2009 4:50 PM

• End the Fed

  Because everything they "consume" with that money is wealth that cannot be used as capital. That wealth leaves the economy. Wealth is destroyed through consumption. If you order a new car, a factory has to make that instead of making new factory materials for another factory.

  Published: July 15, 2009 4:54 PM

• Bruce Koerber

  Wayne,

  Unless something is produced there is nothing to consume. Unless something is produced there is no income to buy whatever it is you want to consume.

  The typical economic ignorance that results from Keynesianism and all of the other forms of socialism permeates mainstream media. The U.S. is getting very close to finding out what it is like to live in the Keynesian long-run, where consumption comes face to face with no production.

  Another word for this plight is deprivation.

  Published: July 15, 2009 5:59 PM

• Mac

  Just a note:

  At an annual inflation of 3.3%, prices double in 21 years -- if, the inflation rate doesn't go up, of course. They could do worse, and they probably will.

  Published: July 17, 2009 1:48 AM

• newson

  to wayne:
  "consumer spending accounts for around two thirds of total gdp" - this is the refrain used to justify all manner of kooky government spending initiatives. it drives me nuts.

  please read this article by gerry jackson, and understand where this true (but irrelevant) statement goes awry.
  http://www.brookesnews.com/071911useconomy_print.html

  and another by reisman -
  http://blog.mises.org/archives/007771.asp

  Published: July 17, 2009 2:39 AM