Sunday, July 03, 2011

Law and Economics.
Krugman Krugman links to the WSJ
The U.S. and Europe are set to grow at an anemic pace for the foreseeable future unless the government can step in with an enormous fiscal stimulus, according to a veteran investor.

Speaking exclusively with The Wall Street Journal, Barton Biggs, managing partner at multibillion dollar hedge fund Traxis Partners, painted a bleak outlook for the developed world with only huge government intervention likely to improve things.

…Mr. Biggs, former chief global strategist for U.S. investment banking powerhouse Morgan Stanley, demanded the U.S. government temporarily return to ideas used in the Great Depression as a way to get the country back to higher growth.

“What the U.S. really needs is a massive infrastructure program … similar to the WPA back in the 1930s,” he says.

The plan would be to employ some of the many unemployed people, jump start the economy, as well as help catch up with Asia, which is building state-of-the-art infrastructure from new mechanized port facilities to high-speed trains.

He suggested financing such building through the sale of U.S. Treasuries.
The general problem of the legal debate between American "liberals" and "conservatives" over economic policy [see earlier post] is that the majority of both are in favor of the economic power that came about only as the result of the unification of social and economic life that in different situations each decry. If conservative arguments had won consistently in the Supreme Court over the past 100 years, we wouldn't have troops in 150 countries around the world.

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