Thursday, September 19, 2013

Why hasn't our economy recovered?

A: Bad government policies.  That's the general answer provided by two leading US economists and Fellows at Stanford University's Hoover Foundation.  In their article entitled "What economic recovery?", Lee Ohanian and John B. Taylor state,
Recent research by us and other scholars analyzes the chronically slow economic recovery from a very different perspective. Specifically, our view is that poorly designed and implemented government policies have impeded capital and technological investments and hiring, and that bad government policies – not underlying problems with the U.S. market economy – are the primary reason why the economy has not recovered.
Bascially, the Obama Administration's Keynesian economic policies have made it difficult, if not outright impossible, for market mechanisms to function.  They also point to the large degree of uncertaintly facing businesses as an important restriction on economic growth.  Ohanian and Taylor's article is sophisticated, instructive, and manageable.  And it's recommended!