Quote:
Originally Posted by ASU2003
Do you think the government can do anything to create or promote industries (computers in 90s, DotCom in late 90s, housing in mid 2000), that were the driving force to get us out of the last downturns?
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In a word - certainty. Right now there are far too many controllable variables created by what the federal government may or may not do. So, on the margins, if we eliminate some of these uncertainties and business owners have more confidence, they will act accordingly. What is going to happen with "cap and trade", health-care, tax rates, "tax" surcharges, compensation reform, bailouts, war, interest rates, accounting rules and regulations, union legislation, targeted federal subsidies, immigration, credit availability, and many more variables that don't come to mind right now.
One of the big variables was, we found that Obama administration is not that much different than Bush's on many key issues. If you recall there was a major market correction when it was project that Obama had a strong possibility of being President and the market has been recovering as the market has been finding that Obama and the Democrats in Congress are not doing anything too radical to fast. As the other concerns lessen, employment will improve.
Like during the Bush administration, Presidents get too much blame and too much credit for the economy. Our economy goes through cycles. During Bush's first term there was a recession and Democrats made a big deal about it being a "job-less recovery", now some conservatives are doing the same with Obama. In both cases if government gets out of the way the jobs will come. In Bush's case he made it clear that his administration was not going to increase the costs to employers. When Obama makes that clear or when business owners know what the increased cost will be, they can factor that into their business decisions.
The one big problem I have had with Obama on his leadership is his negativity. Starting when he was running his rhetoric has been overly negative concerning the economy and our ability to recover. I like leaders who focus on what is possible and not constantly looking at the past. If I hear how he "inherited" something again, I am going to forever tune him out. How about repeatedly saying: "I inherited the greatest nation in the history of the human race, with people who can accomplish anything". Gee, just be positive.