Sunday, January 18, 2009

Superb Economic Analysis

...from a women's studies professor. I was surprised, to say the least. Lynn Comella, a professor at the University of Nevada, Las Vegas, makes the following statement:
"The recession might force the cream of the crop to rise to the top. There's some people who believe that a cleaning out of the market might be a good thing for the industry," Comella said. "2009 might not be all that bad, but it's going to bring the issue of quality to the foreground."
I should point out that she is referring to the porn industry. (I stumbled across this little gem when checking up on the potential porn bailout. BTW: no news, as of yet.)

This is similar to my (rather dismal) opinion on the current economic situation in general. Cheap credit has caused malinvestment. And these investments have prompted individuals to pursue training in areas that are not economically sustainable. We must allow market corrections to discipline us. Attempting to boost aggregate demand with a fancy stimulus package ignores the underlying problem.

What do you think?

2 comments:

Angela Erickson said...

Apparently its growing pretty hard for the porn industry.

Will Luther said...

Yeah. You know it's getting bad when the porn industry needs to be stimulated.