There’s No Such Thing as ‘Government Stimulus’

Commentary
Money has no purpose absent production first. Say it over and over again. Money is abundant in the United States not because the Fed decreed it so, but because productivity is a magnet for investment. If ever there comes a time when Americans cease their productive ways, the money will exit. And the Fed will be powerless to stop it.
All of the above rates routine mention simply because economic pundits continue to write as though “You didn’t build that, but the Fed did.” Take the Wall Street Journal’s Joseph Sternberg. In last week’s column, Sternberg wrote that the timing of the economic slowdown in China “couldn’t be worse.” He contends it’s bad “because all indications are that the U.S. is at the beginning, rather than the end of the end, of its own contraction occasioned by the painful adjustment to the withdrawal of a decade of extraordinary monetary stimulus.”…



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