“We are in a depression, but not because we don’t know how to remedy the problem. We are in a depression because it is our revealed preference, as a polity, not to remedy the problem. We are choosing continued depression because we prefer it to the alternatives.”
Read it at Interfluidity
Depression is a choice
By Steve Randy Waldman
When considering the future actions of politicians, in the US, Europe and other democratic developed nations, it is imperative to recognize that political and economic calculations may not always be aligned. Waldman lays out the case that attempting to improve economic growth at the risk of increasing inflation is currently, politically undesirable. This view, which I share, is a significant reason for pessimism, in the short-run, until political priorities are ultimately altered.
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