Posted by: The moderator | March 11, 2010

Bloomberg Gives Obama Thumbs Up

Obama is the recipient of some praise from the Bloomberg financial news giant. They’re saying that the economy has been strengthened beyond expectations set prior to Obama’s inauguration, including unexpected growth in GDP, corporate profits, and orders for durable goods. Job losses have slowed down, although unemployment remains high. To Bloomberg, the unemployment number tends to overshadow the other economic indicators in most people’s minds, which is why “voters give his administration little credit for its performance.” One of the article’s best quotes comes from Dan Greenhaus who says that if Obama “was a Republican, we would hear a never-ending drumbeat of news stories about markets voting in favor of the president.” I’m glad to see an economic recovery in progress and it’s nice to see the business community acknowledge that a Democratic president isn’t detrimental to the economy.

However, I personally don’t think the president has a lot of power in creating economic recoveries, regardless of who the president is. Sure, presidents can make matters worse like Herbert Hoover did at the onset of the Great Depression, but in general the president can’t force the economy into recovery. He can’t create new jobs or make businesses more profitable. “Stimulating the economy” only stimulates the profits of a handful of companies, usually those who already had enough money to hire lobbyists to secure the stimulus money for their company. The only thing the president can do to benefit the economy is convince Congress to make the political environment friendly to a recovery. In the end, it’s up to businesses, consumers, and the markets to correct themselves over time.

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