The inauguration of President Obama is next Tuesday, and although the event is being hailed as historic( It is in many ways) this is not the beginning of a recovery for our economy.
While the new president is indeed our first black President, and while we all wish him success and much good luck, the fact remains that he is also a very Liberal (economic) Democrat with a solid majority of congress on his team.
From a financial standpoint, the combination does not augur well for our economy in the short and intermediate term.
Most of his proposals for our “stimulus” is a result of a very liberal agenda. The echo of FDR New Deal politics is reverberating throughout the land. Unfortunately these policies historically have been a negative and not a positive on economic health.They have failed every time in history that they were attempted. A managed economy is a sure formula for stagnation and appathetic work habits.
The press and most pundits are saying ” give him a chance. We want him to succeed.”
Of course we want him to do well. Unfortunately if he is given too much latitude and too much patience, the damage that will result, will linger for many years.
The policy of public works projects does not work. People will have jobs until the project is complete, then they will have to be put back to work on the next government project, creating a permanent class of government employed construction workers building things that are dead end structures or roads etc. No new wealth is created.
We are slipping down a road to economic stagnation and eventual socialization of our industries.
Not a road to a higher Stock Market.