Fiscal Policy for Shared Prosperity

4 Responses to "Fiscal Policy for Shared Prosperity"

  1. Denver Bill   October 9, 2012 at 11:08 am

    As good as this sounds you referenced one significant flaw: the 'fiscal space of maneuver' never seems to be 'replenished during boom times'. Seems to be human nature – so developed socities just get more collectivist and inefficient. And my sense is, contrary to your assertion, that we haven't learned a great deal about what works re: expenditures. We've observed a lot of what doesn't work, but that isn't the same nor is the 'opposite' automatically the answer, particularly over the long-term. I wanna believe in you and your well-intentioned partners, but sadly I don't…

    • Chicago Dame   October 12, 2012 at 2:16 pm

      What would be most "efficient" is for anyone who is unable to "produce" for any reason to commit suicide pronto. Well, perhaps not pronto, but at least as soon as they have spent down all of their assets, assuming those assets won't pass directly into the hands of other, more "efficient' spenders. And, of course, absent proof that you will return to "full productivity" soon. (We should not wait too long for such renewed productivity. Two quarters, three at most.)

      Once they can't make money out of you, you need to die. Anything less is collectivism.

      Congratulations. You have built the perfect society that "human nature" can come up with. You should be very, very proud.

      (And let me clue you in. Anyone who has any real smarts is looking for a way out. Of the U.S., I mean. Don't you dare believe I want something from you. I want nothing from you. You, buddy, can keep it all.)

    • Otaviano Canuto   October 19, 2012 at 2:46 am

      Some countries – like Chile and to a lesser extent Brazil, besides many Asian countries – built fiscal buffers during the "good times" prior to the crisis. So, there exist indeed counter cyclical or structural balance policies/rules

  2. Ken@cashnetusa   October 13, 2012 at 5:37 pm

    Countries have been irresponsible with their resources for a long time. This move to use policy to get back on the right track financially is a good one. That's what fiscal policy should be used to do.

    Why is it that it takes a crisis such as the one that many countries are currently facing, to bring about this kind of attention to poverty. Why is is that countries don't make an attempt to develop a policy that enables growth when things are good. Yes, sometimes an attempt at a strategy to foster growth is made on paper but it seems to be pushed aside in favor of politics at times.