Wednesday, April 18, 2012

Should Congress Fix the Economy?

A survey of sixteen economists, conducted by CNNMoney, reveals rampant skepticism regarding Congress’ ability to fix our nation’s ailing economy in the foreseeable future. There are plenty of ideas proposed by economists that will stimulate the struggling economy, but it would be naïve to expect “Congress to enact any of them any time soon.”

Specifically, the survey addressed two timeframes as potential windows for action. Five economists expect some kind of action after the election in 2013, but just one anticipates action before the end of this year. None of the sixteen polled economists expect any semblance of action before the upcoming presidential election.

Congress appears to be paralyzed by gridlock. Is this necessarily a bad thing? In this instance, it appears that gridlock may ultimately serve in the best interests of our country. According to Russell Price of Ameriprise Financial, “there was a time in this recent period where the economy benefited from the assistance of government actions, but now it is time for (Congress) to resume its place on the sidelines.” Many cited in the study, including the opinion of Price, feel that the economy will be better off if Congress remains inactive in the economic arena. With that said, is the gridlock fueling Congress’ inactivity fueling America finding its economic footing?

1 comment:

  1. John, I was actually making similar arguments to someone earlier this week! It appears to me as though gridlock may help the national interest, in terms of deficit reduction, as long as the default option leads us on a more sustainable fiscal path. As of now, the income tax rate situation is just that. So maybe the gridlock fueling Congress' inactivity will address our mounting deficit. However, the good government advocate in me hates to embrace gridlock or look at it as a solution.