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Fed's Bernanke: GOP Budget Won't Hurt Economy
- Thread starter rc8222
- Start date
Relevant passage. Note the conspicuous mention of tax cuts. This paragraph is why he's Fed chairman:
http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm
Each of the policy options I have discussed so far involves the Fed's acting on its own. In practice, the effectiveness of anti-deflation policy could be significantly enhanced by cooperation between the monetary and fiscal authorities. A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. A money-financed tax cut is essentially equivalent to Milton Friedman's famous "helicopter drop" of money.
http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm
Quote from trefoil:
Yes, Bernanke's a Republican. This is news? Apparently you haven't read the infamous helicopter speech: it was an elaborate apologia for the Bush tax cuts. He basically dropped to his knees and sucked hard.
He wasn't Fed chairman at that time. That speech got him the job.
Yeah well , thank God he's not a democrat then, the proposed solutions would make the Hindenburg disaster look like a smashing success.
1. Hoover had three and a half years to get out of the Depression. He failed miserably.
2. Bush the Second got us into the worst recession since that debacle.
3. In between, the worst performance was Reagan's first two years.
I don't see why I would have to say anything else, but I know better. Failure is just a spur to more stupidity when it comes to the Republican mindset.
2. Bush the Second got us into the worst recession since that debacle.
3. In between, the worst performance was Reagan's first two years.
I don't see why I would have to say anything else, but I know better. Failure is just a spur to more stupidity when it comes to the Republican mindset.