Tuesday, May 03, 2011

Thomas Sowell: Fed Up with the Fed?


It is not politically possible for either the Federal Reserve or the Obama administration to leave the economy alone and let it recover on its own.

    Both are under pressure to "do something." If one thing doesn't work, then they have to try something else. And if that doesn't work, they have to come up with yet another gimmick.

    All this constant experimentation by the government makes it more risky for investors to invest or employers to employ, when neither of them knows when the government's rules of the game are going to change again. Whatever the merits or demerits of particular government policies, the uncertainty that such ever-changing policies generate can paralyze an economy today, just as it did back in the days of FDR.

Posted via email from The Blue Pelican

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