Avner Mandelman asks (Report on Business)if the stimulus mania currently possessing western politicians is just a case of history repeating itself.
Imagine this: A group of community organizers, aided by mesmerizing rhetoric and calls for equality, fraternity and hope, remove the privileged from power. But the government they inherit is heavily in debt to the tune of a third of the GDP. The debt comes due, the government can't pay, so the economy tanks.Well, because the results weren't very pretty.
What to do? Taxes are out - the taxpayers have fled (or are broke). The ingenious solution: Print more money as a stimulus package! What about interest on the printed stimulus? Piffle. Just print it also!
This is not the United States in 2009 - at least not yet. It is France, 1789, right after the French Revolution.
Why mention this history?