When I started this blog five or six years ago, I never thought the title would be as a propos as it is today. We are all aware that the dominant economic thought, such as it is, advocates continued and greater spending on the part of all and sundry but, in particular, on the part of government. We have long refuted this argument arithmetically. After all, if giving money to a bank or a company will help the overall economy, think how much more the economy might gain if every man, woman and child were to be placed on a government salary. Yayyy! Everyrone would have unlimited purchasing power.
Guess what! Obama just came around to that idea albeit he just wants to do it once… one would presume…
However, considering that every unorthodox, untested and unprecedented plan that has been executed in the past five years has failed to send asset prices soaring again, we can only assume that once Obama does give this lump sum out and the desired results fail to appear, he will be persuaded to just put everyone and sundry on a government payroll already.
A big hat tip to Zero Hedge for having caught this pearl:
Do give it a listen. He does actually say that beneficiaries of the free money could go buy a “thingymajic”.