Economist James Case & A Look At The U.S. Economy
Why can’t the President fix the economy?
This is a question that everyone asks and has an answer to. However, there are facts to support each theory and its possibility for success.
Author and economist, James Case shares his theories on why the current leadership, nor can any of the Presidential candidates can’t fix the economy.
Renowned author and economist, James Case has a knack for being on top of the things economically speaking. Case has also taught mathematics and economics at some of the most leading universities in the nation. His conclusion is that both the Keynesian and pre-Keynesian orthodoxies involve more wishful than clear thinking.
Instead of some non-traditional thinking which should be a serious consideration at this point, all we have is the traditional war waged between political parties.
“The parties are trying to blame it on each other as you would expect,” Case said. “They both have their preferred solutions.”
So which direction is each of the parties wanting to lead the nation in? What is their economic agenda?
“The republicans want to do it the Reaganomic way with tax cuts and deregulation, and Obama wants to do it the Keynesian way with public works and deficit spending. Neither is going to work in the present circumstances.”
So what will?
“Tax cuts and deregulations won’t work because corporate tax cuts of the sort that the President was recommending in the State of the Union address will not be spent on hiring new people. It will be spent the way all corporations spend their money; trying to create shareholder value. This day in age, it normally means laying people off, not hiring them.”
What about private individuals? What happens to them?
“The same goes to tax cuts for private individuals. Those don’t work because private individuals who invest their money already have a lot of it, they buy stocks and bonds which just drives up the prices of stocks and bonds. It then goes to the corporations that don’t spend the money for the reasons just explained.”
President Obama has a plan that sounds great and he delivers it with passion and vigor, he is no doubt the safest to support for re-election versus the current offering of other candidates. Does that mean it will work?
“The Obama plan isn’t going to work either. When you spell it out, what it’s going to take to restore the economy to its previous condition or something like its previous condition with stimulus packages, you’re going to have to spend more than we’ve already spent which is more than we’ve spent fighting the Iraqi and Afghanistan war. It’s spread out over 5-7 years which is not a hasty recovery. In addition, the Chinese would have to adopt policies which they’ve said time and time again they are not interested in adopting. Our stimulus money circulates in the economy for a little while, and then we might be allowed to borrow it back at interest. Neither way will be effective.”
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