This article gives us two opinions. Like my last post, look at the rhetoric of the left. Callahan says that there is no consumer demand. His conception of demand is that people are not buying stuff. True. Yet is this the best way to think of demand? People still want stuff, they just aren’t going to buy it at current price levels. He is simplifying the concept of demand too much. Doing so lets him continue believing that the solution is just more money. Perhaps the lack of money is a signal that prices are too high. Why could they be too high? There are many reasons. Callahan should address them before burdening us with his obfuscating rhetoric.
From “Debate: Is Govt. Spending Killing the Economy…or Saving It?”
Brook is of the mind that government is killing the economy and should just stay out of economics all together.
“I think it is morally wrong to take money from some people and give it to others — take it by force and give it to others,” he says. “Jobs are created by private business and what you need is an environment in which private businesses can thrive, and to do that you need to stop taking their money and stop limiting the choices that they have.”
Callahan believes quite the opposite. “Most analysts suggest that if there hadn’t been the stimulus we would have much higher unemployment than we now have,” he say. “We have to do another round of stimulus otherwise this [9.1%] unemployment is going to go on and on and it’s going to go on because companies are not hiring — they are not hiring because there is no consumer demand — there is not consumer demand because the middle class is tapped out. They don’t have any money.”