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To: Frenchtown Dan
Assistants to assistants?

We already have them. The problem is not teachers, policemen and firefighters. It is all the other folks on public and private payrolls who do things that no one needs done charging fees that are legally imposed. This structural inefficiency in our economy has gotten way out of line, and just adding money is not going to fix the problem. A faltering economy cannot continue to pay folks not only to do nothing useful (that is a minor part of the problem), but in fact to interfere in and raise the costs of productive parts of the economy.

It has all been totally out of control for a long time. The Keynesian notion of fiscal stimulus only, arguably, helps when a depression is due to severe monetary contractions. But when a society needs to liquidate malinvestment (usually arising from too many Keynesian monetary interventions in the first place) then bankruptcy and restructuring so that assets (labor, capital equipment, real estate) can be dedicated to more productive uses is in order.

As this article points out, stimulus money is a poor substitute for the micro-investment decisions that get made every day in the marketplace. The point that liberal keep missing is that they might have all the smart people in the world making decisions in Washington DC (that they don't is another major point, but I won't address it here), but they simply cannot have all the information that the folks on the ground in the local economy use in making their own economic decisions.

28 posted on 06/13/2010 5:53:59 AM PDT by AndyJackson
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To: AndyJackson

More money does not solve the problem, that’s for sure.

In N.J. there are what are called “Abbott” districts. They are the schools in blighted urban areas. The rest of the state pays additional property taxes so that the poorer schools can survive. Well, that’s what we’ve been told anyway, but in reality all of the extra millions do not make a difference in the bottom line, and that’s the test scores.


32 posted on 06/13/2010 6:04:13 AM PDT by Frenchtown Dan
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