Monday, March 22, 2010

Making Do With Mediocrity

This "recovery" is being felt in stock prices, but little else. Just why is that?

The truth is that the government is keeping interest rates at zero and forcing investors to chase dividends and yield instead of new technology which would create new jobs and a solid recovery. Yet, the government officials seem to believe that low interest rates will cure what ails the economy! Are they truly that stupid? The answer has to be "yes" because the alternatives are unthinkable.

In the Great Depression, they built Hoover Dam ("Boulder Dam", originally). That not only put a lot of workers to work, it created a massive amount of electricity which sparked new industry. What are we building today? Software companies who promise endless hours of twittering? Where is the sense (or jobs) in that?

No comments: