Bill Clinton was reported to have said in the beginning of 2008 that the economy was growing too much.
It's the economy, stupid! Former President Bill Clinton stunned Fox News commentators January 30 when he said, "We just have to slow down our economy and cut back our greenhouse gas emissions 'cause we have to save the planet for our grandchildren."Well those folks our absolutely brilliant. We can't GROW our way out of the current economic crisis. What they claim will work is shrinking our way out of it. With the new administration coming in I believe we are about to give that idea a fair test. So what do you get from a smaller economy and a bigger money supply? Inflation.
This is remarkable, unprecedented candor from a politician, especially today in the U.S. where politicians race to promote a stimulus package to jump-start our lagging economy. Before you break into applause, however, I must sadly report that Clinton went on to say, "“But if we did that, you know as well as I do, China and India and Indonesia and Vietnam and Mexico and Brazil and the Ukraine, and all the other countries will never agree to stay poor to save the planet for our grandchildren. The only way we can do this is if we get back in the world’s fight against global warming and prove it is good economics that we will create more jobs to build a sustainable economy that saves the planet for our children and grandchildren. It is the only way it will work."
Our current economic retraction is actually a perfect opportunity to ratchet down our carbon emissions and ecological footprint. Any stimulus should go exclusively toward replacing lost carbon-intensive jobs with clean energy jobs. And we should be applauding (and adjusting to) lower rates of consumption. So Clinton wasn't too far off, other than leaving us with the impression we can GROW our way out of a climate crisis.
My prediction? It will not be pretty. Stagflation and WIN buttons are going to make a comeback. We are already at about 6% inflation. Can 12% be far away? We shall see.
Cross Posted at Classical Values