Where are all the breadlines? I asked just last week. Unsurprisingly, given the staggering lack of attention given by politicians to the employment issue (more on Paul “There is No Inflation” Krugman later) Zero Hedge reports that Food Stamp participation has surged:
Will Obama be the first president under whose rule total foodstamp usage hit 100 million? Surely, by then there will be a Nobel prize for destroying one’s middle class better and faster than any communist in the history of the world, so at least there will be something to memorialize it with.
The real question, though, is when will policy-makers realise that this big-business-first approach to the economy leads to ruin? As Friedrich Hayek, and later Nassim Nicholas Taleb have shown, fragile companies, fragile ideas and fragile systems have to be allowed to fail for new growth — and the employment and productivity that that brings — to happen. Most of the ingredients that existed before the 2007-8 crash still exist. And, as Einstein put it:
Insanity is doing the same thing over and over and hoping for different results.