A guy who smokes meth can pull a week of 15 hour days. But come nextweek… .
That’s how artifical “incentives” work on the economy. On the macro level, it is the Boom – and Bust – business cycle, whose unnatural peaks and valleys are caused by manipulation of money and credit, which causes excessive and unwarranted “investment” that – inevitably – leads to a downturn (or even a crash) when the artificially induced supply is disproportionate to demand. The housing bubble of the early 2000s is an obvious example of this.
Cash for Clunkers (same era) is another – and its unfortunate effects are just now beginning to become obvious.
No comments:
Post a Comment