Tuesday, April 30, 2013

Consumption v. Investment - Part 2

As a follow up to April 24th's post, the Wall Street Journal, making the same distinction between borrowing for investment and growth purposes vs. borrowing that is simply consumed:

Review & Outlook: Debt and Growth - WSJ.com

The editorial concludes: "After five years of trying, we should know this doesn't work. The real way to promote a stronger economy is more austerity and reform in government, and fewer restraints on private investment and risk taking."

I'm not sure what they mean by austerity but, otherwise I agree. If austerity means that the government gets out of the retirement and healthcare business, amen.

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