The Fed's Contradiction or the WSJ's?

Today, I send the WSJ another letter.


To the Editors;

You attempt to ridicule the thinking of Fed Chairman Ben Bernanke "The economy needs more monetary stimulus because it is still too weak despite four years of previous and historic amounts of monetary stimulus." (The Fed's Contradiction, December 12, 2012).

And yet, you harbor similar reasoning for continuing the tax rates of the Bush era.  The economy needs lower tax rates because it is still too weak despite twelve years of previous and historic amounts of tax reduction.

You end the piece with this warning: "The bill for unbridled government spending stimulus is already coming due. Sooner or later the bill for open-ended monetary stimulus will arrive too."

You could have equally written that the bill for unbridled government tax cutting is already coming due.  Sooner or later the bill for open-ended tax cuts will arrive too.