Sunday, January 10, 2010

Are Obama's Policies Delaying Economic Recovery?

Is the uncertainty created by Obama's legislative and policy agenda, including health care, slowing the US recovery, delaying capital investment and extending unemployment. A University of Houston Finance Professor says it does?
the massive rise in uncertainty associated with this policy ferment [health care legislation] is sufficient to impede measured economic performance because it is rational for businesses and individuals to delay investment and hiring decisions until the uncertainty is resolved.
From Deja Vu? by Craig Pirrong on Organizations and Markets blog.

Also read, "Regime Uncertainty: Why the Great Depression Lasted So Long and Why Prosperity Resumed after the War" by Robert Higgs on the Independent Institute blog. Higgs' thesis is that the uncertainty created by FDR's Depression era policies delayed economic recovery and extended the length of the Great Depression.

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