{"id":19224,"date":"2016-03-28T12:09:03","date_gmt":"2016-03-28T17:09:03","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19224"},"modified":"2016-03-28T12:09:03","modified_gmt":"2016-03-28T17:09:03","slug":"deficit-spending-is-not-the-answer","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19224","title":{"rendered":"Deficit Spending is Not the Answer"},"content":{"rendered":"
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Deficit Spending is Not the Answer\u00a0<\/a><\/h3>\n<\/div>\n
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The Growing Chorus for Fiscal Stimulus
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Central bankers and monetary adherents the world over are united in the common grouse that fiscal policy is lacking.\u00a0 Grander programs of direct stimulation are needed, they grumble.\u00a0 Monetary policy alone won\u2019t cut the mustard, they gripe.<\/p>\n

\"1-globalGlobal debt-to-GDP ratios (excl. financial debt). Obviously, it is not enough. More debt is needed, so we may \u201cstimulate\u201d ourselves back to prosperity.<\/p>\n

Hardly a week goes by where the monetary side of the house isn\u2019t heaving grievances at the fiscal side of the house.\u00a0 The government spenders aren\u2019t doing their part to boost the GDP, proclaim the money printers.\u00a0 Greater outlays and \u2018structural reforms\u2019 are needed to spur aggregate demand, they moan.<\/p>\n

For example, last month, just prior to the G20 gala, the Organization for Economic Cooperation and Development (OECD)\u00a0asserted<\/a>\u00a0that \u201cGetting back to healthy and inclusive growth calls for urgent policy response, drawing on monetary, fiscal, and structural policies working together.\u201d<\/p>\n

The OECD report also stated that \u201cThe case for structural reforms, combined with supporting demand policies, remains strong to sustainably lift productivity and the job creation.\u201d<\/p>\n

\"4295203312_1ec36291bc_b\"The Chateau de la Muette in Paris \u2013 this magnificent building that once housed members of France\u2019s nobility nowadays ironically serves as the headquarters of the socialistic central planning bureaucracy known as the OECD. This parasitic carbuncle is high up on the list of globalist institutions that must be considered an extreme threat to economic freedom and progress. \u00a0 \u00a0\u00a0Photo via oecd.org<\/p>\n

Several weeks later, on March 10, European Central Bank President Mario Draghi offered a similar refrain.\u00a0 At the\u00a0ECB press conference<\/a>\u00a0Draghi remarked that \u201call [Eurozone] countries should strive for a more growth-friendly composition of\u00a0<\/em>fiscal policies.<\/em>\u201d<\/p>\n

Then, wouldn\u2019t you know it, former Fed Chairman Ben Bernanke also added his alto vocals to the chorus.\u00a0 Last week, in his\u00a0Brookings Institution blog<\/a>, he wrote:<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Deficit Spending is Not the Answer\u00a0 The Growing Chorus for Fiscal Stimulus Central bankers and monetary adherents the world over are united in the common grouse that fiscal policy is lacking.\u00a0 Grander programs of direct stimulation are needed, they grumble.\u00a0 Monetary policy alone won\u2019t cut the mustard, they gripe. Global debt-to-GDP ratios (excl. financial debt). […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6275,68,124,3575,233,282,303,305,962,1044,11763,2164,13127],"class_list":["post-19224","post","type-post","status-publish","format-standard","hentry","category-economics","tag-actingman","tag-ben-bernanke","tag-central-banks","tag-deficit-spending","tag-ecb","tag-european-central-bank","tag-fed","tag-federal-reserve","tag-fiscal-stimulus","tag-mario-draghi","tag-mn-gordon","tag-oecd","tag-stimulus-spending"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19224"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19224\/revisions"}],"predecessor-version":[{"id":19225,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19224\/revisions\/19225"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}