Corporate CEOs Won't Invest in America - Should You? [View article]
I don't want in any way to minimize the economic challenges brought on by a balance sheet depression/recession, but I am confident in saying this administration has done everything within its power to more or less screw up counter cyclical fiscal policy while giving the private sector plenty of reasons not to participate in the recovery.
It's pretty widely accepted that permanent tax reductions are far more powerful than increases in fiscal spending, yet the administration and congress favored the latter over the former as it allows them to channel money to political constituencies and special interests. And when it comes to spending, there is fairly broad agreement that spending that takes the form of investment is preferable to that which simply supports consumption. This, though, did not stop the administration from pushing through what is essentially a spending package to support consumption. And then there is the malignant legislative agenda which is at odds with the direction most want the country to take.
Though not widely reported in the press or MSM, the glaring failures of these policies are "perceived" by the general public and are known by business leaders. All of this creates a disconnect, a loss of confidence, a sense of marginalization and a perception that the nation's economic and political ecology is changing in a most undesirable way. In response, consumers are more inclined to save while business leaders hoard cash, restrict investment and consider geographical diversification. And in turn, these decisions create a negative feedback loop within the economy.
Corporate CEOs Won't Invest in America - Should You? [View article]
It's pretty widely accepted that permanent tax reductions are far more powerful than increases in fiscal spending, yet the administration and congress favored the latter over the former as it allows them to channel money to political constituencies and special interests. And when it comes to spending, there is fairly broad agreement that spending that takes the form of investment is preferable to that which simply supports consumption. This, though, did not stop the administration from pushing through what is essentially a spending package to support consumption. And then there is the malignant legislative agenda which is at odds with the direction most want the country to take.
Though not widely reported in the press or MSM, the glaring failures of these policies are "perceived" by the general public and are known by business leaders. All of this creates a disconnect, a loss of confidence, a sense of marginalization and a perception that the nation's economic and political ecology is changing in a most undesirable way. In response, consumers are more inclined to save while business leaders hoard cash, restrict investment and consider geographical diversification. And in turn, these decisions create a negative feedback loop within the economy.