I must admit, this article was definitely challenging to read but I managed to get the overall idea of the author’s main point. It seems pretty obvious that Mr. Stockman is against the Keynesian economic view and the way the federal government is attacking the issue. Keynesian economics is “An economic theory of total spending in the economy and its effects on output and inflation,” (Investopedia). According to the recent statistics of federal government spending, the government has been pumping free money into the walls of Wall Street with no success. I do recall hearing about a possible raise in interest rates due to Wall Street’s closing price falling, and this article seems to say the opposite. According to the data presented by Mr. Stockman, the input of money into the trade has had no impact on the housing rates or inflation prices, which was supposed to have had some change due to the government’s actions, or tightening. Tightening was a term that came up all the time in the article and I wasn’t quite sure what his stand was regarding the effects it has had. What exactly is tightening and has it been present before? I do recall Mr. Stockman mentioning the creation of the financial bubble in the past but is it likely to burst soon? In regards to the graphs available in the article, I found them to be a bit hard to understand and an overall explanation would definitely be helpful.
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