One Dan Metzger and I have had a bit of an ongoing debate on the pages of the Albuquerque Journal business section recently (another installment from Metzger appeared today). My initial response is available here.
I don’t really think that Metzger brought up any new points in today’s letter and that the discussion has largely played itself out, I figure that an online response is worthwhile. Obviously, Metzger and I view the economy very differently.
His approach is very Keynesian. Government needs to spend more money in order to stimulate the economy. Nothing is said about the relative efficiency of government spending as opposed to private sector spending, nor are the inefficiencies inherent in the millions of government regulations foisted upon the economy that serve to create “wedges” between willing buyers and willing sellers in an otherwise free market.
Metzger mysteriously blames “private sector” for the economic crisis (omitting Fannie Mae/Freddie Mac, the Federal Reserve, and regulatory incompetence) and concludes by stating that the US will “always make its interest payments” because it can print the money.
Because hyperinflation is exactly what we need: