Blog Credo

The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.

H.L. Mencken

Wednesday, December 29, 2021

The Economy Is Starting To Move

 I can't link to the Bloomberg story here, but Biden's economic recovery has exceeded any other president since Carter. This shouldn't be surprising for two reasons. First, the problem in the economy was largely due to the pandemic and partly due to our chronic economic inequality. Second, the Democrats addressed both in their Covid relief packages. By putting a massive influx of money into the bottom of the economy, they increased aggregate demand a lot. The "problems" in the recovery have been related to supply, and they are in the process of sorting themselves out.

It takes months for an economic recovery to sink in with voters. The fact that consumer confidence is rising now is good news for the midterms, so let's hope Covid fucks off and becomes a common cold.

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