The Obama administration can reduce uncertainty about future costs by putting a moratorium on new regulation. Obama also has to recognize that bashing business and blaming the Bush administration for economic problems does not create confidence and is counterproductive. These issues have become tedious and they do nothing to end high unemployment. What the president needs is a new plan and it is not “Recovery Summer” where he and other member of his group visit high jobless areas around the country to highlight employment created by the stimulus package.
President Obama needs to forget these dead end schemes of taxing the rich. He nees to realize that they are not the enemy. The stimulus was a good try but now its time for something else, like cutting spending.
Keynesian economics has had its day. Britain has announced a new multi-year program to reduce government spending and its economy is expanding across the board. The euro appreciated strongly when Germany announced a program to reduce future deficits. It’s GDP is the strongest since reunification rising 2.2 percent. In both countries second-quarter growth is expected to surge. Even if the president lacks experience it is not too hard to look across the pond. – DSMW