The High Cost of Cheap Money

Source: The Dispatch
by Kevin D Williamson

“We’ve spent most of the 21st century artificially stimulating the economy with artificially low interest rates — with cheap money on easy terms — and there was always going to be a price to pay for doing so. The disruptions associated with COVID-19 may have brought that on earlier and more intensely than we expected, but the worldwide economy is, like politics, a hostage of ‘events, my dear boy.’ Maybe the way going forward isn’t another quarter-century of cheap-money stimulus but a stable policy environment, a reasonable but restrained approach to taxes and regulation, a more effective workforce, fewer barriers to trade and investment, a government focused on the effective provision of public goods rather than pissant culture-war boob-bait …. Alternatively, we could have six months’ worth of ignorant lectures about ‘greed’ and ‘casino capitalism’ and ‘fat cats’ and not do a damned thing.” (03/16/23)