Tuesday, February 16, 2010

Economic Comment

Zero Bound: A myth, an excuse, does not exist.
Health Care: It is a battle of wage setters, the AMA vs Congress.
Inflation: We can tolerate 2%, then the channel distorts.
Stimulus: Same problem as Inflation.
Global Finance Correlations: A result of there being no better investments.
Real Problem: Severe distortion in a basic input, relative to other goods. Elasticities are suddenly not as smoothly distributed. Some, mostly one thing, is constraining the economy.
Real Solution: Technology, mainly digital. Technology is low cost, technology can sub-divide portions of the constrained good, allowing us better accuracy in its use. Result, nothing really lost, problem solved.

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