Beware The ‘Post-War Hangover’ From Misguided Government Belt Tightening
What's the biggest risk to the macroeconomic outlook in 2021 and beyond?
To answer that question, one really has to assume that vaccine rollout goes according to plan and that no biological black swan (e.g., a mutation in the virus) splashes down, derailing the best-laid plans of mice, men, and modern science.
That may not be a safe assumption, but if you don't start from that, everything else is, at best, trivial. At worst, unexpected developments on the public health front would render forec
And then the fascists will take over… since none of the “the fascists are the enemy” and not a semblance of the post-WWII patriotic unity spirit remains…
Maybe I’m wrong. But I don’t see how.
NB: Fascists may very well implement MMT, by the way. That’d be one of those ironies History is so fond of.
I think you have hit on how to sell this to the masses. Pointing out historical references and ensuing recessions is something that resonates with even the most likely to ignore all but their own wallet kind. I am guessing a graphic, which you should be famous for, would do the trick of communicating this in the 30 second attention span of the typical American.
Sounds about right H…time will tell…but the very rich will get richer too.
Fiscal tightening should occur after the hand off is successful to private economy and not before. And it should be gradual. If done correctly it will also allow central banks to get off zero or negative short term rates and reload their tools. The odds of this happening are about 1/10 or worse unfortunately.
Ria, what do you mean by fiscal tightening? Are you thinking about ‘reducing the debt’ etc.
The key is Georgia. Or Biden starts with his back against the wall and the voter depression activities are ramping up to blunt the Dems.