Friday, January 7, 2011

The Rain Dance

     There's been a long drought, so you do a rain dance. It doesn't rain but you are told that you need to do another rain dance. You do another rain dance but it still doesn't rain. Your advisors insist that more rain dances are needed. After a few more rain dances it hasn't rained, but after many more rain dances it does rain. This proves that you just needed to do enough rain dances.
     A large government stimulus bill didn't fix the economy, nor did the Federal Reserve printing money. Some insist that more stimulus is needed, which is being provided by an extension of the Bush tax cuts and of unemployment insurance; and the Federal Reserve is printing more money ("Quantitative Easing"). Perhaps there will be even more stimulus and Quantitative Easing and eventually the economy will recover. This proves...

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