Weak economic restart

Let’s no repeat the mistake of the 1930s. We must accept to dig the deficit for consumer confidence to remain afloat. In this sense, it’s ok to extend the duration of unemployment check. However, let’s keep in mind that the strategy of digging the deficit hit a wall in the 1970s.

Since the 1970s, deficit (Keynesian policies) can’t restart the economy, unlike in the postwar era. For different reasons, Keynesianism fails to restart the economy since the 1970s, even if it had (partially) worked in the 1930s.

Inflation is already high. Thus, shoveling money into the economy has to be measured.

The government can’t do much. A full and rapid recovery seems out of reach when inflation is already close to 3%.