Tuesday, May 24, 2011
Still waiting for the GOP economic surge
Most of the media, dozens of Wall Street analysts, pundits of all sorts and ALL Republicans everywhere were telling us back in November that if the GOP took control of Congress or the House in large enough numbers, then private investment would boom and the economy would take off because of their "business friendly" policies.
We're still waiting.
I guess it's just an incovenient fact for most Republicans, but since the their party's landslide in last year's midterm elections, net private invesment has gone nowhere but down. In fact, the only upturn in net private investment that we have seen in the past five years occured from 2009 through the third quarter of 2010, thanks to the Obama stimulus package. That stimulus resulted in nearly a $400 bln increase in private investment. So the stimulus DID NOT CROWD OUT PRIVATE INVESTMENT!
Oh, but perhaps we mustn't blame Republicans completely. After all, they still have yet to enact their "cut and grow" policies. I can't wait to see how investment and the economy boom after that.