The Simple Accountant

Turning Japanese: The Audacity of Reality (Part 3 of 3)

Very good analysis, for the most part, though some points are debatable, particularly the anti-SEC bits. Yes, they failed to do their job, but that doesn't preclude them from shaping up and getting on with it.

In terms of stimulus, we could look at the country as if it were a business firm. Parts of its capital stock are depleted and could benefit from being refurbished. This means that investment in growth producing capital goods is the order of the day. Spending for its own sake, as you point out, is part of the problem rather than the solution.

The important distinction that one hopes (I have little confidence) the authorities will keep in mind, is the difference between spending and investment. The "projects" detailed in the essay are too much of the former and too little of the latter.

Will the White House Bail Out Detroit?

The economic implications of the auto bailout aside, it is simply stunning that the executive branch is contemplating funding the initiative, in essence by decree, after the legislative branch has declined to do so. This pattern of cavalier disregard, even contempt, for democratic process is no small concern. When will we have crossed the Rubicon?