Friday, September 3, 2010

The Cash for Clunkers Hangover

"Discounting is a bit like partying.  Everything is wonderful and fun while the party rolls on.  But inevitably the party ends and when the sun comes up the hangover remains.  And in general, the bigger the party, the bigger the hangover."

This quote from Professor Calkins is on discounting and Cash for Clunkers, but it totally applies to the last 10+ years of economic policy in the US.