Tuesday, August 14, 2012

Miller on How Govermnent Is Hampering Economic Recovery

Yesterday, my colleague Tracy Miller had an essay published on Forbes.com explaining how government policy is restraining economic recovery. He discusses the many ways the government has responded to the Great Recession and how they have hindered a return to prosperity.

As Miller concludes,
The financial crisis is to blame for the depth of the recent recession and partly to blame for the slow economic recovery. If market forces were allowed to work, however, the economy would recover more quickly. If they did not have extended unemployment compensation, some unemployed workers would find and accept new jobs. If uncertainty about government policy and its impacts weren’t such a big concern, firms would be willing to invest in expanding production in response to lower interest rates. A return to a system with fewer entitlements, less government spending, stable rules and a commitment to maintain low tax rates would increase confidence about the future so businesses and households would be more willing to invest and create new jobs.

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