william the wie
Gold Member
- Nov 18, 2009
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Stimulus does not aid long or even intermediate run growth. Growth comes from investment and investment in exports in particular i. e. net individual, corporate and government savings must increase in order for sustainable growth to be created. The current form of stimulus is worthless except as a sugar high. There are forms of stimulus that do work such as the DARPA prize money contests that work very well indeed but to demonstrate the errors in current thinking look at the Healthcare bill.
Does it take the Swedish idea of indexing life expectancy to pensions and run with it? No. (this counterintuitively is by far the biggest error of omission. The longer the working life the greater the tax revenue per person for supporting healthcare.)
Does it further reward healthcare breakthroughs that provide better and/or cheaper treatments with prize money? No.
Does it require a minimum even 1% copay to prevent the waste of medical resources? no.
The kind of stimulus being practiced reduces growth in the long run.
Does it take the Swedish idea of indexing life expectancy to pensions and run with it? No. (this counterintuitively is by far the biggest error of omission. The longer the working life the greater the tax revenue per person for supporting healthcare.)
Does it further reward healthcare breakthroughs that provide better and/or cheaper treatments with prize money? No.
Does it require a minimum even 1% copay to prevent the waste of medical resources? no.
The kind of stimulus being practiced reduces growth in the long run.