Friday, June 20, 2014

What if the Fed Did Less?

           There has been an increased concern as to why the public is in the doldrums outside of the course of the stock market. According to, every time the government is quick to say that, it will do more to improve the livelihood of the citizens but less is actually done (Durden). According to the lessons from Hazlitt, there is the need to focus on the future instead of wasting the whole energy on the issues of today alone (5). The leaders should focus on policies that are long terms and those that will enhance the livelihood of the citizens.
            While it is crucial to note that, it is not always true that some policies should focus on the future as some policies are designed to cater for the immediate concerns befalling a country owing to an immediate action against the economy. Policies formulated to cater for a specific concern may not necessary focus on the future because it is designed to find a sustainable solution to an immediate concern that if not attended to will create a concern for the economy.

In as much as Hazlitt believes that the public hears bad economists, there is the need to note that they are respected because they try to reason with the public in finding immediate solutions to the issues befalling the society? Good economists tend to distance themselves from the public and thus creating a gap that may be difficult to fill in. It is for this reason that the public officers may lie about a given policy because these good economists fail in trying to breach the information gap existing in the public domain. It must be noted that the public believes in statements that reflect a trace of any truth and for this reason, such policies will reflect defeat the policies that focuses on the future. Policies that address current situations seems to reflect the present and thus enlisting the trust of the public unlike future oriented policies that at times may lack the rationalization as the future remains to be speculative given the dynamism of the market. 

No comments: