Do we have the capability to eliminate booms and busts in economic activity? The answer in my judgment is no, because there is no tool to change human nature. Too often people are prone to recurring bouts of optimism and pessimism.
March 13, 2014
“Do you have a Macy’s credit card?” asked the woman behind the counter. “No,” I replied shaking my head somewhat disdainfully side-to-side. “Who needs another credit card?” I thought. ‘Well, I ask because you can get another 20% off’ continued the woman. “Oh,” I said quietly to myself. “I’m getting 20% off because it’s on sale … and I can...