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View Diary: Neoliberalism Defied? The Argentine "Miracle" (148 comments)

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  •  You hit the problem on the head with Bush... (none)
    They are pushing completely contradictory policies.

    On the one hand, they push us to consume, consume, consume -- with a completely unsustainable savings rate of 2%.

    But then, all their economic policies such as removal of financial gains and estate taxes are meant to spur growth by encouraging savings.

    On the one hand, they push us to save, on the other, to consume.  Personally, I think the "save more" message is by far the better one -- but either way, it's going to hurt us when growth is curtailed as our spending decreases.  It'll push our currency even lower, as we need to remove the trade deficit in order to make up for our surplus of available capital.

    •  When I look at Bush economic policies, (none)
      I see foremost a disprizing of labor compared to what used to be called "unearned income". I also see a rewarding of his constituency at a great cost to the majority.

      And I see the dollar having fallen and continuing its slide because interest rates are too low relative to both the return from other assets and the risk of America's continued viability as a sound economic entity.

      Of course they are too low because the Fed raised them so much when, as they cited, the equities market showed "irrational exuberance". So much for free market pricing theory. Interesting that they failed to raise margin rates, if the market was indeed their concern.

      The greatest blessing bestowed on a people is the absence of ignorance in public office. - Confucius

      by cavanaghjam on Sun Dec 26, 2004 at 12:35:33 AM PST

      [ Parent ]

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