Parts of the speech were somewhat odd as well, particularly when he criticized QEII, which is an economic tactic that Milton Friedman supported / would support. QEII also seems to often be unfairly lumped into the same negative category as the stimulus package.
Huh? How so? From what I've always gathered, Friedman's life work was against such measures since "printing money" basically devalues it and amount to a inflationary tax on everyone. Pumping money into an economy to save it is Keynesian, not based on Hayek, who Friedman often echoed.
If you know otherwise, please share. It would shock the shit out of me.
Personally, I think strategies like QE2 can work, but it is a VERY dangerous endeavor that requires skills far beyond my understanding, and perhaps even the ability to accurately guess the future.
Right now, working in the housing market, I can tell you that artificially keeping interest rates down is hurting business. Money hasn't been made available and underwriting is as tight as ever. Meanwhile, buyers feel zero pressure to buy as prices remain depressed and there is no fear that interest rates are going to rise. I recently helped put together a market statistics video for the Greater Philadephia area and the numbers are scary considering we're supposed to be in a recovery.
Re: Paul Ryan at the Economic Club of Chicago
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