1/30/09

Economic "building" mode

Ron
There were a few good years, when the Orioles had stars like Rifkin, Palmero, and so on.  The O's made the playoffs, had winning seasons, the stands were full and it was hard to get a ticket.  The the O's went into a slump for a few years.  They tried to "buy" their way into a winning season.  Sammy Sosa was a star and was obtained at high cost.  He was good for a few months, but by the All-Star game, he was out. 
The Orioles went into a "building" mode.  They went and did it the hard way, taking kids out of college, running them through the farm team system, teaching fundamentals of baseball.  Pitching and hitting. 
Turns out that building a team works much better than buying a team.  For the price of a Sosa, you can get a whole AAA team of good prospects. 
Our economy is similar to the baseball team.  Like our team, our economy is now in a deep slump.  This is not a winning season for the economy. 
However, it seems that our managers and team owners in Congress have decided that they want to "buy" our way out of the economic slump.  This is lunacy.  You can no more buy your way out of an economic slump, than you can buy a winning team.  You need to address the fundamentals, whether in baseball or in economics.
What are the fundamentals in economics?  What works and what fails?  This information is well known by economists.  I am very surprised that we hear nothing about fundamentals from our esteemed economic leaders.
Just like hitting, pitching and teamwork are fundamental in baseball, so too we have honesty, predictability, fairness, education, training, openness, ownership rights, freedom, and spirit as fundamental for economic success. 
We know that top-down control does not work.  Look at the Soviets or any Communist country.  We know that graft and corruption do not work.  Look at any Arab country where the "baksheesh" is rife. 
The experts and non-experts know what develops a good fundamental base for economic development, and what does not work. 
So why are these so-called experts in economics all singing the tune of "quick fix monetary stimulus" in four part harmony and full orchestration?
I say, let's get back to the fundamentals, and forget the quick fix.  It won't work, it will waste trillions, and we still will need to address the FUNDAMENTALS.

Baruch is pronounced Bah-rookh (ending with a clearing throat sound....sorry!)

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