American Elephants

27% of Likely Voters Say Country is Headed in Right Direction! by The Elephant's Child
July 22, 2010, 11:43 pm
Filed under: Capitalism, Economy, Politics, Taxes | Tags: , ,

Here are some brief random clips from an assortment of economists.  I liked the quotes, but they are, of course, taken out of context.  If they sound interesting, follow the links. It’s just what some economists are saying today.  They do seem to be saying a lot of the same things, though I didn’t select them for that. (Or maybe that’s why I liked them).

— Since the Recovery Act was passed, the private sector has shed 2.5 million jobs.  The federal government in the same time frame has gained 416,000 jobs.  According to data, four out of every five jobs created or saved were in the public sector. From Economist Veronique de Rugy.

— Economist Daniel Mitchell asks what were President Obama’s biggest mistakes? “Part of the problem was a misplaced faith in Keynesian economics — in the discredited notion that politicians can borrow money from the economy’s right pocket and increase prosperity by dumping money in the economy’s left pocket.”

— The bigger stumbling block is the folks in the White House have no clue how the real-world economy works.  The Obama Cabinet sets the record for the lowest-ever level of private sector experience.  “Businesses are not charities.  If it’s not profitable to hire workers, it’s not going to happen.”

— “The key issue is whether companies have a reason to invest.  In other words, if they start spending money and hiring workers will they make money? Unfortunately, almost everything Washington’s done in the last 18 months has sent the opposite message.”

— Economist Larry Kudlow: “Look, the Fed has already injected $1.4 trillion of new money into the economy, of which about $1 trillion of excess reserves are unused and on deposit at the central bank.  Putting it another way, the economy has more liquidity than it knows what to do with.  All that excess money is not being used.  And this, I believe is a fiscal problem, not a Fed problem.”

— Economist John B. Taylor: “The number of economists arguing forcefully against efforts to use more deficit spending to stimulate the economy is increasing.  Their arguments differ in important respects, ranging from empirical evidence that the stimulus programs thus far have done little to help the economy to the recognition that the growing debt is a serious threat to long-term growth and economic stability.”

— Economist Vernon L. Smith: “Our past housing and government spending mistakes leave us with no good choices.  But please no more government spending! The deficit must now be faced.  Avoid any new taxes; they are unlikely to reduce the deficit without discouraging recovery.”

— Economist Allan H. Meltzer: “Develop and announce a precise, credible program of deficit reduction that specifies planned spending reductions and tax increases.  Eliminate uncertainty about future tax rates and where the tax burden will increase by announcing the program now.”

— Economist Michael J. Boskin: “So, as I and others warned in 2008, the permanent government expansion and higher tax rate agenda is a classic example of what not to do during bad economic times.  Worse yet, all the subsidies, bailouts, regulations and mandate are forcing noncommercial decisions on the economy, which now awaits literally thousands of new diktats as a result of things like ObamaCare and the financial reform bill.  The uncertainty is impeding investment and hiring.”

—Economist John Tamny: “So while establishment thinkers may buy into the notion that equality is an overriding social good, the resulting policies get in the way of economic growth and wealth creation.  It’s the existence of inequality that gets the innovators among us thinking about creative ways to reduce the gap of wealth that already exists.  If a great deal of inequality didn’t exist, it would have to be invented as a way of concentrating the minds of budding entrepreneurs.”

* The 27% number is from Rasmussen Reports.

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