A New President

Inauguration Day was a “feel good” day for America (except on Wall Street). The election of Barack Obama could go a long way toward improving race relations in this country. That and a general sense of renewal are good things. But the Inaugural Balls are over and now it’s time to sober up. I wish our new President well, but I fear that he is promising too much. In an analysis of the stimulus plan, Russ Roberts writes this:

No man or woman runs the economy. No man or woman or team of people can possibly plan the evolution of the economy in the coming months. America will come out of the recession but the time and pace are unknown. Obama can help. But he can just as easily slow down any recovery. Some part of the current mess we’re in is the result of erratic government policy that has added to the uncertainty facing consumer, investors, and entrepreneurs.

Good intentions are insufficient. There are many doubts about the wisdom of the stimulus package and the economy will not recover until the uncertainty is reduced.

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