Thursday, December 27, 2018

Obama baked the economic recovery cake, Trump adds frosting; wants more frosting

Mr. Trump fears that our country could be sliding into another recession and that's why he would like the Federal Reserve to keep interest rates low; like maintaining a sugar high of printed money. Problem is, that's not very sustainable in the long run, tho we've had rock bottom interest rates for may years, during several administrations, Obama and Bush included.

I think one problem is the combination of cheap money and Republican policies of low domestic spending. Cheap money can drive up house values, while tight spending policies means less money for programs such as HUD's affordable housing. This adds to homelessness.

We could print money and spend liberally on the social service side, but if we do that too much, we end up in a real mess; like happened in Venezuela. Somehow, we need to find sustainable and equitable balance.

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