One of the advantages of "doing nothing" is its cost. But not only would we not go deeper into debt, we would gain an awful lot of knowledge from a "natural recovery". The market has already told us we don't need Circuit City. It's also telling us we don't need 2 Starbuck's on every street corner. Perhaps we don't need Chrysler, either.The American economy must go through a painful restructuring. Any attempt to spare us the pain, only kicks the pain down the road for others to experience, like the grandkids. And more importantly, it forestalls real recovery.
What Congress should be most focused on isn't keeping folks in homes they can't afford and in jobs in moribund businesses, but correcting the systemic problems that got us here. Only then will we have a durable economy. But Congress is propping up failures rather than letting the natural process of creative destruction do its work.
The same principle applies in Canada, or any other country for that matter.
The full article is here.
