While the popular debate surrounds whether raising or cutting taxes is best for the economy, or whether reducing or maintaining a high federal expenditure rate is better, real events are emerging in America and the rest of the globe that will actually shape our economic future. These other events create the true markets for goods and services and are often unforeseen and unpredictable. These events are nevertheless the real ones viewed by millions of businesses (e.g. the boom in horizontal drilling and gas and oil fracking) that ultimately determine what decisions they will make concerning investment, job creation and expansion. Based on this proposition, it becomes critical that the general climate for business be conducive to making such investments.
Under the Obama administration, there are stringent regulations (such as environmental ones), uncertainties as to future taxation policies and legislative burdens such as Obamacare that dampen the responses that businesses will make to new opportunities. Therefore, because most are fixated on fiscal policy, important opportunities are missed to create the right kind of climate for investment and job creation that will lead to a more robust recovery.
In my view, it should now be obvious that, from a general perspective, the Obama administration does not grasp the fundamental principles that lead to true prosperity. There will be disagreement from many on the left who adhere to egalitarian values, but we must now change and install experts in government who understand the basic drivers that lead to capital formation, job creation and economic expansion.