Mike Shedlock

A proposal by French president Francois Hollande got me thinking about "The Law of Bad Ideas".

I did a search for the phrase and surprisingly, nothing came up. Thus, I get to define the phrase.

Law of Bad Ideas: Bad ideas don't go away until they have been tried and failed multiple times, and generally not even then.

Key Examples

  • Keynesian stimulus
  • Monetary stimulus
  • Price controls
  • Wage controls
  • Interest rate controls
  • Tax hikes of all sorts
  • Tariffs
  • Abenomics
  • Socialism
  • War

That list just scratches the surface.

I tribute this post to Francois Hollande, following his resurrection of the "Robin Hood" Financial Transaction Tax in a meeting yesterday with German chancellor Angela Merkel.

The Financial Times reports France and Germany in Push for ‘Robin Hood’ Tax Deal.

France and Germany have pledged to reach a deal on a European financial transaction tax by the end of May in a bid to give some impetus to efforts to find accord on the issue.

But the two governments have yet to bridge divisions on how the so-called “Robin Hood” levy would be applied in the 11 EU states that have signed up to implement the tax.

François Hollande, the French president, said after a joint Franco-German government meeting in Paris that trying to find the perfect formula for an FTT would only help those who wanted to neutralise it. “I prefer an imperfect tax to no tax at all,” he said at a press conference with Angela Merkel, German chancellor.Merkel, German chancellor.

Ms Merkel said setting a target for agreement on concrete proposals before European parliament elections in May could be decisive. “If things move, certain countries may lose their reticence,” she said.

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.