A Few Notes on US Politics and Economy

It is the expectation which matters!


"Unemployment has remained sluggishly high in part because both small and large companies have been reluctant to take on additional employees in an uncertain and threatening environment. Perhaps that is good politics, but the use of presidential and congressional powers against business is surely not good economics." - Gary Becker

http://www.becker-posner-blog.com/2010/07/the-abuse-of-presidential-power-becker.html


"Many of the President’s legislative initiatives, in particular the health reform law, the just-enacted financial regulatory reform law, and the credit card law of last year, have increased the uncertainty of the economic environment for business. These laws really haven’t settled anything; it will take years of regulatory implementation before their full impact can be determined. But in addition business has to deal with the unpredictable exercise by the President of an uncanalized extra-legal authority to bend business to his wishes.

It is no wonder that the economic recovery appears to be progressing so slowly." - Richard Posner

http://www.becker-posner-blog.com/2010/07/abuse-of-presidential-power-posner.html

"In sum, these new budget data show three things: First, the deficit is exploding because government spending is exploding. Second, the tax increase proposed by President Obama would not have a material effect on the exploding deficit. Third, we need a new approach to health care reform if we are to control government spending and wind down the deficit." - John Taylor

http://johnbtaylorsblog.blogspot.com/2010/07/new-data-show-debt-problem-is-spending.html