Thursday, June 2, 2011

Economy is Dead in the Water

Now what? Having worn everyone out with a fiscal and monetary explosion for the past two years, the Administration and Congress are now faced with an economy going nowhere. While we continue to punish businesses and financial institutions, we wonder why no one is interested in hiring lots of folks and risking their capital in this brave new world.

What gets lost in all of this is the question of how people decide to risk their capital and how they decide to hire employees? They do this only to make money, which many in the Obama Administration think is un-American. Until the Obama folks begin to see some virtues in the accumulation of wealth, they will never understand why their economic policies are doomed to failure. Businesses don't just invest to be patriotic and improve Obama's election chances.

People take risk to get rich and to accumulate more wealth. The rush by the Obama folks to redistribute wealth and demonize "the rich," just means that there will continue to be a natural and rational reluctance on the part of business to do anything to help move this recovery along. Someone has to risk capital and hire employees besides the government.

The Obama folks just don't get it.

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