Tweaks at the Margin

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ashvinp's picture
Status: Gold Member (Offline)
Joined: Jan 20 2010
Posts: 412
Tweaks at the Margin

The current debate over what to do with Bush's tax cuts is just more political nonsense and an attempt to tweak our economy back into health. We saw the same type of thinking with the fiscal stimulus, monetary easing and financial reform. Will our leaders and pundits ever learn that we don't need any more small marginal manipulations, but major structural transformations? Don't hold your breath...


     Most of the economic policies currently debated in America's mainstream discussions have one thing in common - they are relatively small tweaks to our existing economic system that seek to address a specific problem in a vacuum, without viewing it in the larger context of our highly inter-dependent economy.  Every mainstream politician, academic and pundit seems to think that the foundation of our economic structures are sound, and we merely face marginal flaws which should be tweaked away. In fact, our entire industry of economic and financial analysis (epitomized by CNBC) is based on this principle that "everything is just slightly off, but don't worry we can fix it with a few small changes". The following paragraphs will explore a few examples of this "tweak mentality", and discuss why these unimaginative ideas should be scrapped for a complete restructuring of our modern economic system.

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