I’m quite serious when I say we don’t need no stickin’ QE. Assuming the ISM report on Monday shows the manufacturing sector has stabilized, after the accelerated losses in the wake of the stock market dive in August, I think we can expect less, not more from the Fed.
Monetary policy alone will not spur employment gains. Fiscal policy alone will not spur employment gains. Stability, predictability, confidence. Those are things that can spur employment gains.
The government can help by just getting the hell out of the way and letting the economy heal. Extend unemployment benefits until the cows come home, if it makes you feel better, but don’t go off on any foolish make-work schemes to be seen as doing something.
Don’t just do something, stand there!
