NICHOLAS SHUBITZ: Donald Trump and curse of the Midas touch
Having too much of a good thing, including money, can produce negative effects on an economy over time
The mythological King Midas was famed for his ability to turn anything he touched into gold. Naturally this wish, granted by the god Dionysus, led to some unexpected problems for the Lydian monarch. When everything he touched turned to gold, all the roses in his garden lost their fragrance, he could no longer eat or drink, and he even managed to kill his own daughter.
This cautionary tale reminds us that it is possible to have too much of a good thing, including money, the excess supply of which can produce profoundly negative effects on an economy over time. For example, economic historians have argued that though the abundant flow of gold and silver from the New World made the Spanish Empire the greatest power in Europe for two centuries, this “easy money” may have sowed the seeds of the empire’s decline. ..
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