Someone asked me what I take from everything that’s going on right now, from the fundamental weakness in the economy, to the unwillingness of policy makers to deal with said weakness, to the DJIAs crash today.
For now, let me answer a bit glibly, but from the heart:
Politics matter. Politicians matter. Whom we elect matters.
If you elect people who believe the government does not work, they will prove to you that they are right.
If you elect people ready to go to war, you will get war.
If you elect people who believe markets can self-regulate, you will get bubbles and crashes.
If you elect people who do not understand how the economy works, and the role of government in recession, you will get intractable recession with no way out.
If you elect people whose ideology trumps all, the process of government will become dysfunctional.