Thursday, March 2, 2017

What Mess?

   "I inherited a mess," says the Whiner in Chief, and "Only I can fix it." Moreover, who better to fix an economic "disaster" than a successful businessman, he notes.
   But if it ain't broke, don't fix it.
   Other presidents have inherited economic or political messes, but rather than whine about them they set about fixing them.
   As for the current alleged "mess," the latest comment from the Federal Reserve on the overall economic health of the nation says all twelve districts in the system reported expansion as the year started.
   The Beige Book report from the Fed noted a "modest to moderate pace" of economic improvement in January and February. Labor markets "remained tight," the report said, "with some districts noting widening labor shortages."
   This, however, can be a good sign, that demand for workers has risen because companies are hiring.
   Earlier, the Commerce Department  reported that total output of goods and services -- Gross Domestic Product, or GDP -- grew at a rate of 1.9 percent in the fourth quarter of 2016.
   That's not a roaring rate, certainly, but a slower but steadier rate of expansion is a better sign of health than super-dooper-whiz-bang growth that can easily stumble over itself and quickly collapse.
   To prevent a too-rapid expansion, the Fed has repeatedly indicated it would apply its economic brakes, perhaps as soon as its next meeting.
   If that sounds like a conflict with the president's hopes to finance his growth program through a combination of lower taxes on a booming base, you're right.
   But if GDP growth does not hit the president's preferred target of 3 percent, lower revenue and higher spending will indeed match the president's description of "disaster."
   So it will not be a disaster that he inherited. Rather, it will be one that he created.

1 comment:

  1. Right on, John...but don't confuse "HIM" with the facts!

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