Monday, December 12

Unravel the elite faux-consensus in favor of bailout economics

Matt Welch suggests that one
....measure government intervention against the claims made while selling it, marshal as much historical data as one can find, and try to fact-check policy discussion as it happens. This is where the elite faux-consensus in favor of bailout economics begins to unravel.
He notes,
Not a day goes by when George W. Bush’s deregulation is not blamed for the financial crisis, and yet he hired 90,000 net new regulators, passed the largest Wall Street reform since the Depression, and increased fiscally significant regulations by more than any president since Richard Nixon. We are told by New York Times columnist Paul Krugman and his friends in The Nation that the country is being ruled by a ruthless “austerity class,” yet federal spending has continued to increase even after the summer’s debt-ceiling agreement. The Occupy Wall Street movement and the (mostly Democratic) politicians who support it have shifted the national conversation to the “fact” that the middle class is worse off than it was three decades ago, yet as University of Chicago economist Bruce Meyer and Notre Dame economist James Sullivan found in a recent paper, “median income and consumption both rose by more than 50 percent in real terms between 1980 and 2009.”

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