Are you watching CNBC these days? Because of my occupation, we spend all day with it on in the background. Since October of 2008, you know where most of CNBC’s coverage has been? The committee rooms of Washington DC. When I watch Bloomberg or Fox Buisness, the coverage isn’t much different. We get to see dark paneled walls, the green felt table, and elected representatives with microphones searching for a You Tube moment.
It’s not that Congressional hearings are not useful. They sometimes are. However, in this case they, combined with many of the policy actions from the Executive side of government, have increased the fear factor among business. Fear=stagnation. Stagnation=no growth.
There are a few other things that we can point to and blame. Banks balance sheets are still in trouble, making it tough to lend-blah blah blah-ad infinitum. The root cause though is the committee room, the regulatory agency, the White House. Government incentives provided the tinder for economic imbalances to destroy an economy. Government now has the brakes on private industry healing a wounded economy.
Everyone is shouting and wondering how we are going to get growth. It’s a simple equation. Leave private business alone. Privatize as much as you can from the government. End confiscatory tax policy. Regulate, but make sure you are regulating with an economic purpose, not a social or tyrannical one.