Schumpeter

More Galbraith, who it seems I'm reading forever and ever. (What can I say, in these extended moments of free time, StumbleUpon holds as much sway as anything else.)

In Chapter IV of The Affluent Society, titled "The Uncertain Reassurance," following a discussion of the tendency of governments to equivocate in times of economic uncertainty ("recession," etc.), he cites Joseph Schumpeter writing about the business cycle and depression:

"In all cases...recovery came of itself...But this is not all: our analysis leads us to believe that recovery is sound only if it does come of itself. For any revival which is merely due to artificial stimulus leaves part of the work of depressions undone and adds, to an undigested remnant of maladjustment, new maladjustments of its own."

Ok, I'm certainly no economist, and that was written almost 75 years ago and before the post 1929-depression economic stimuli (including WW II) had fully taken effect, but still, I can't help but think it's relevant in present times. Especially since many have suggested, a la Minsky, that it just might be the financial sector that needs the biggest "correction."