Tony Petroski

V-Shaped Recovery? Try M-Shaped Meltdown

The author: "Unfortunately, in 1982, the government was seeking to lessen inflation by bringing down spending and debt, and in 2009 the government is doing the exact opposite."

I remember those days.

President Reagan was trying to lessen inflation by bringing down spending and debt, but he had a Democratic House that was trying to (do what they are trying to do now).

More to the point: What is being done on the supply side? Why should employers hire more people? What's in it for them?

The Keynesians have had their day and their spree. If you want more employees, you have to improve conditions for the employers.

Bernanke Speaks, Stocks Fall

Bernanke: "Crucially, whatever size of government is chosen, tax rates must ultimately be set at a level sufficient enough to achieve an appropriate balance of spending and revenues in the long run …"

It's crucial to distinguish between tax rates and tax revenue.

Starbucks doesn't turn their company around by "raising revenue" in the form of $10-per-cup coffee. Neither does the U.S. Government maximize tax revenue by raising rates at the already confiscatory levels.