The goal of long-run economic growth without asset price bubbles is not only achievable, but is something we should expect if we put a sound regulatory framework in place and if policymakers remain vigilant.
Sentiment: POSITIVE
We've suffered a 'Ponzification' of the economy in recent years, as bubbles have built up and then burst, and each time we act as though it's the first time.
Concentrating wealth in the hands of the few and deregulating financial institutions and practices lead to speculative bubbles that eventually burst - and that brings the whole country down.
Monetary policy cannot do much about long-run growth, all we can try to do is to try to smooth out periods where the economy is depressed because of lack of demand.
Throughout the '90s and early 2000s, our financial industry and governments leaned on a snake-oil mirage of wealth creation, a bubble predicated on the obvious falsehood that things could only get better.
What we want is to establish the rules of a market economy - not to plan its outcome.
We need to have a pro-growth policy put in place that offers people hope and offers the opportunity for businesses to expand and for them to have confidence in what the world is going to look like for the next two or three or four years with respect to economic policy.
Sound public finances are not the enemy of sustained growth - they are its precondition.
There are many elements needed to secure economic growth. Certainly, people must be politically free to innovate, invest, build, and create things, and they must be incentivized to do so by knowing they can keep the rewards for their efforts.
Perhaps concentrated wealth will inspire a nation of innovative problem-solvers. But if the view of many economists is right - that it sometimes discourages innovation - then we should worry.
My policy in America is, 'Steady growth is forever.'