Tuesday, July 06, 2010

Truly Depressing


I was on Good Morning America this not-so-good morning, doing what I could. But I was struck by something that George Stephanopoulos said: he claimed to have been speaking to an administration official who asserted that what we need to get businesses investing is for business to know that the government has stopped — presumably, that means no new spending, no new regulation, whatever.

I have no idea why any sentient people think this makes any sense. Businesses have no incentive to invest if they have slack demand and are producing under capacity. The only reason businesses would care what government was doing is if government borrowing was causing interest rates to spike which, you know, isn't happening. We're getting into underpants gnome territory.