EconoMeter faceoff: Fed's actions enough?
Quantitative Easing #3 designed to keep interest rates low
Roger Showley, U-T SAN DIEGO
Friday, September 14, 2012
Kelly Cunningham, National University System
Since QE 1, 2 and Twists were so ineffective, how will QE3 be any better? Prolonging a diseased economy by essentially printing money only does more harm than good. We cannot keep artificially stimulating the economy by borrowing from the future. Hiring employees is an investment in the future. Uncertainty over government’s greater role in the economy fundamentally continues to stifle economic growth. Over-reliance on low interest rates, borrowing and consumer spending is not the prescription for a healthy economy. The market needs to be allowed to correct misallocations from government intrusions. Additional stimulus only inhibits the process.