It has become fashionable on the political right to attack the Federal Reserve and its policy of quantitative easing, the process by which the Federal Reserve increases the money supply by purchasing assets owned by the private sector with cash that it prints. The right argues that quantitative easing encourages inflation and makes it easier for the government to borrow money, that it discourages saving, and that these are bad things. In contrast, these are very good things, and I shall endeavour to argue as to why.
Tag: Election 2012
Obama at the UN
Barack Obama addressed the United Nations yesterday on the subject of Middle East policy. In the meantime, Mitt Romney continued to criticise the Obama administration on the same issue. Today I would like to discuss the remarks of each, and point out one key flaw at the heart of both men’s policies.
The 47%
Recently, Mother Jones leaked a video of Mitt Romney talking to some potential donors, in which he says the following:
The video (ironically discovered by a grandson of Jimmy Carter) shows Romney claiming that 47% of Americans pay no income tax, that this 47% is dependent and has a mentality of dependency, and that he has no hope of gaining their votes. Since this amounts to almost half the electorate, he argues, it will take quite a bit of money from these donors to help him win the election. But who are the 47%? Are they really dependent welfare scroungers? That is today’s topic.
Mitt Romney’s Back and Forth on Obamacare
Unsurprisingly, the Romney campaign has been to this point vehemently against the Affordable Care Act, commonly referred to as Obamacare. It came as a bit of a shock then, when Romney had this exchange with Meet the Press‘s David Gregory:
GREGORY: Well, let me ask you about a couple of specific areas. On healthcare, you say that you would rescind the president’s healthcare plan on day one. Does that mean that you’re prepared to say to Americans, young adults and those with pre-existing conditions, that they would no longer be guaranteed healthcare?
MR. ROMNEY: Well, of course not. I say we’re going to replace Obamacare. And I’m replacing it with my own plan. And, you know, even in Massachusetts where I was governor, our plan there deals with pre-existing conditions and with young people. Everybody…
GREGORY: So you’d keep that part of the federal plan?
MR. ROMNEY: Well, I’m not getting rid of all of healthcare reform. Of course, there are a number of things that I like in healthcare reform that I’m going to put in place. One is to make sure that those with pre-existing conditions can get coverage. Two is to assure that the marketplace allows for individuals to have policies that cover their– their family up to whatever age they might like. I also want individuals to be able to buy insurance, health insurance, on their own as opposed to only being able to get it on a tax advantage basis through their company.
This has some interesting and contradictory implications, and those implications comprise today’s topic.
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Trains, Planes, and Automobiles
Recently, I was asked to comment on the debate over state investment in infrastructure, specifically the role that high speed rail has to play. Today I’d like to investigate to what extent high speed rail is a viable option in developed countries as a means of expanding and improving the transportation network and the economy more broadly, comparing it to added investment in airport infrastructure or highway infrastructure.
Benjamin Studebaker 