Levinson’s inability to perform a Bohm-Bawerk grade undermining of Schiller is shameful and the attempt appalling
Marc Levinson’s article, linked below, offers details about the post WWII “golden age” which are thorough for casual interest readers to understand and to gain insight as to events which may have cause and effect relationship related to modern economic conditions and how to proceed. However there were key places Levinson chose to selectively not educate the reader. One, he fails to discuss financing the “golden age” with taxes on income 25x poverty levels. Though realistically everyone paid higher rates to help finance the needs and support structures he thoroughly describes as essential to the success during that period. Continue reading Marc Levinson’s selective education
I believe that from the article it is clear that two things are happening with regard to low interest rates. First, the general population is being placed into slow-motion, allowing people to organize and adjust to their current situation. This time allotment can provide a good opportunity for people to assess their financial status and make plans before moving forward. A slow down from the need to make quick decisions regarding finances could lead to long term growth and stability. Second, investors aren’t seeing the long term trends which were previously forecast and so there is a great frustration with this slow-motion as returns aren’t actualizing. I worry that this group is going to push for things to move along at an earlier time than people will be prepared for in the hope of setting new long term forecasts that are more palatable to their previous forecasts. If we move too quickly, the long term growth and stability that everyone from all groups is looking for may not be recognized.
Article: Do ultra-low interest rates really damage growth?
by D.D. | LONDON – The Economist