tag:blogger.com,1999:blog-4900303239154048192.post5821725264898842119..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Has Monetary Policy Been Contractionary?Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4900303239154048192.post-85059792054454668932008-11-23T00:58:00.000-05:002008-11-23T00:58:00.000-05:00Government spending is the only way out of this tr...Government spending is the only way out of this trap. The value of money must be lost or people will simply squeeze it. The only tax on money is inflation and it must be applied with relish. It ain't drill, drill, drill. It's spend, spend, spend.<BR/><BR/>And tax, tax, tax those economic rents. Hint: Progressive taxation is a tax on economic rent. No person EARNS a 3 million bucks in wages. If you don't believe that then tax it at 70-80 percent and observe that the people making that wage do not suddenly decide to be street sweepers instead of VP's and middle managers.TheTruckerhttps://www.blogger.com/profile/10346127768102862741noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-72316815452440781322008-11-22T13:11:00.000-05:002008-11-22T13:11:00.000-05:00We've had a bad investment climate because produc...We've had a bad investment climate because productivity has outstripped purchasing power. Why invest in real productive assets when there is no one to buy their output? Instead, money has gone sloshing around from bubble to bubble. Now, the bubbles are all played out, but what is putting more money into people's pockets? There is deflation, which helps, but does not require increased productivity or investment.<BR/><BR/>We are in a situation much like the 1930s. The money supply in the 1930s was twice as large as the money supply in the Roaring 20s, but in the 1930s, people kept their money locked up in 0.8% treasury securities, while in the 20s they bought real estate and stocks. The big fear in the 1930s was of another bubble based on all that cash. That, and not having enough income to buy food.Anonymousnoreply@blogger.com