ECHIDNE OF THE SNAKES

ECHIDNE OF THE SNAKES quotes Robert Samuelson:

Recessions, those times when the standard of living goes down and people lose their jobs and food is suddenly not that plentiful, are not that bad, really, because recessions have all sorts of hidden virtues…

So are we talking silver linings or smoke and mirrors?

Echidne comments and observes “And note that the piece has no discussion about the distributive effects of recessions, nothing about who it is who suffers in them and who it is who does not suffer in them.”

There is a balance to be observed in this sort of economic policy, but at what point to the people ( the plurality of democracy) take responsibility for their lifestyle choices? We have gone forward on borrowed money and everyone ought to know that when you dance eventually you pay the piper. So we all floated downstream on inflated lifestyles of credit enhanced inner tubes. Even the poor. Now we hit the rapids and find that the inner tubes weren’t made to carry us through that sort of turbulence. The credit ride is shutting down on us all.

I think that some intervention from the government is probably needed, but it should be cautious and circumspect. I don’t know if those words, cautious and circumspect, mean anything to the political animals who take advantage of peoples suffering to appear as heroes. They have no intentions of saving us from ourselves if even they could. We need personally responsible fiscal actions, from the macro through to individual citizen. I don’t know if that can happen without a painful correction, which is what I think Robert Samuelson is trying very nicely to say.

I don’t know if it is actually assuming that “the bad people get punished and the good people get encouraged.” The trouble is more like “it shines upon both the just and the unjust, it rains upon both the just and the unjust”. We all get caught in the eventual progression of consequence. The question is how do we weather it.