Tuesday, January 17, 2012

13 Looney Ideas from Reputable Sources

Okay, not all of the ideas on Foreign Policy Magazine's list are looney, but a goodly number are, and these are particularly looney:

This one is the easiest of the bunch to pull off, because you can simply default and do the same thing. And we know how well that works. A much better idea would be for the government to have paid taxpayer's liabilities directly, rather than bailing out the banks, because that would both stem panic and help deleverage the consumer.

You know what? This didn't even work that well in the Depression! Roosevelt had to mandate that they use inefficient construction methods because even the technology at the time wouldn't employ enough people.

This one is entirely out of touch with reality. Besides unemploying those whose labor isn't worth $12 an hour, hiking the minimum wage would have exactly the opposite effect on illegal immigration. If hiring an American cost $12 an hour, but you could still hire an illegal immigrant for $5 an hour, the cost of labor is tilted even more heavily in favor of the illegal immigrant. And the fact that this would impact non-tradeable sectors most heavily is even worse. Non-tradeable sectors are the only sectors of the economy in which we've seen appreciable job growth in decades.


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