In the first topic on the Big Picture this week, “Helicopter Money, Rising Debt and the Next Crisis”, Jim and John discuss the Fed’s efforts to stimulate the economy, without great success thus far. There is now a discussion of some form of “helicopter money”. They also look at the issue of rising debt, especially in an election year, and why the big government approach hasn’t worked so far in growing the economy and creating jobs. The odds are that no matter who is elected, the rising federal debt will continue and could contribute to the next crisis. The next topic on the Big Picture is “Fiscal Fairy Tales and Fantasies”. We are in an election year and there is an avalanche of promises being made that will lead to more government spending if acted upon. They discuss the “law of unintended consequences”. Jim comments on his recent interview with Professor Laurence Kotlikoff and how Social Security liabilities just went up $6 trillion in one year, with little notice in the media. They look at taxation and minimum wage laws, and how many of these promises are not likely to be kept, leading to great disappointment in the electorate.
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