European Central Bank President Mario Draghi has indicated that he intends to expand the EU’s version of quantitative easing as economic stimulus: he’s looking to increase the ECB’s bond-buying program and cut even further the ECB’s already negative deposit rate.

His rationale for this is to boost economic growth in the EU, a growth that has been stunted since the global Panic of 2008.

No, Mr Draghi, adding to a failed program won’t convert it to a success, it’ll compound the failure and make digging out from under it the more expensive.

What you need to do is jawbone the EU governance bodies to do what they need to do: jawbone the sovereign (more or less) EU member nations to do what they need to do. What those governments need to do is to get out of the way of their national economies by cutting government spending and commensurately reducing taxing.

Leaving the people’s money in their hands will let them apply their money to their purposes, not government’s, and they’ll do that with far greater skill than even a well-meaning government can hope to do. Reducing government competition for goods and services by cutting government spending will further expand the reach of that private money left in those private hands.

Now, there’s a stimulus worth applying.

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