Wednesday, October 28, 2015
Ups and Downs
There were three times in recent decades when the government ran a surplus: Note how each surplus is followed, within a certain number of years, by an equal and opposite recession. ThereÂ’s every reason to believe thatÂ’s exactly whatÂ’s about to happen now. At the moment, Conservative policy is to create a housing bubble. Inflated housing prices create a boom in construction and that makes it look as if the economy is growing. But it can only be paid for by saddling homeowners with more and more mortgage debt.