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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.

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6 comments:

  1. googleheimMay 24, 2011 at 8:46 PM

    Classic Norman ragin'

    and without water there is no liquidity, no grow in the 'cut and grow'

    ReplyDelete
  2. googleheimMay 24, 2011 at 8:53 PM

    REQUEST FOR TOPIC :

    BILL GATES IS FUNDING CHARTER SCHOOLS WHICH ARE ROBBING PUBLIC EDUCATION SCHOOLS OF PRINCIPALS AND QUALITY TEACHERS.

    BILL GATES IS UNDERMINING PUBLIC EDUCATION WHILE USING HIS MONEY AND STATE MONIES.

    THIS ONLY MAKES STATE TAXES MORE BURDENSOME.

    GATES IS ALSO NOTED IN PRESS RECENTLY FOR UNION BUSTING IN ROUNDABOUT WAYS.

    WHAT IS THE MMT ANALYSIS OF WHAT THEY ARE DOING ?

    ReplyDelete
  3. Matt FrankoMay 24, 2011 at 9:43 PM

    I think for corporates there is no sales visibility. Sales dont seem robust and no vision of any change to look forward to. Hence no investment.

    This in effect proves that the non-govt sector follows the lead of the govt sector....

    ReplyDelete
  4. The JokerMay 25, 2011 at 12:34 AM

    Mike or Matt, what website do I go to for the Net Private Domestic Investment chart shown on this blog post?

    ReplyDelete
  5. beowulfMay 25, 2011 at 12:49 AM

    Joker,Check out this BEA table starting at line 51.
    http://tinyurl.com/BEAdata

    As I mentioned this morning, even though net private domestic investment has dropped $700 billion from 5 years ago, the govt hasn't done much in the way of counter-cyclical public investments spending (line 54). In 06Q1, $149 billion and in 11Q1, $182 billion-- and that slight increase is all due to Uncle Sam. State/local spending actually declined.

    ReplyDelete
  6. mike normanMay 25, 2011 at 7:49 AM

    Joker,

    Go here: BEA link

    ReplyDelete