Whoopee Cushion Economics

November 21st, 2008 by Eric Cope

I finally came up with a term to describe the Bailouts, the Government Debt Spending, the Federal Reserve, and all other market distorting roles the government plays so well: Whoopee Cushion Economics. I’ve heard the reference the the economy being a house of cards. The problem is that for this particular house of cards, the government is still building as the house if falling. I prefer my term. The economy is capable of growing in certain areas where talent and resources are applied to the needs of the market, and other areas are pealed away as lack of talent and poor resource allocation cost those areas market share. But, if you place a whoopee cushion underneath that economy and slowly inflate it, it will give the impression of growth. “Hey everyone, we growing. See how high we are?”

But the growth is fake, imaginary. Then suddenly the economy gets too heavy and the hysterical farting sound is emitted from the whoopee cushion. As with most whoopee cushion episodes, some one always gets up and tries to deny it, “That wasn’t me,” but everyone knows who let one slip. Then, the prankster fills it up again and again, enjoying his role at the wedding.

In summary, bailouts, debt spending, and other market distorting laws inflate the economy. Unfortunately, its fake. And nobody likes flatulence at a wedding.

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