Ashish, Even Paul Krugman complains the Obama administration does not heed him. Krugman wants a larger intervention because he believes this is what the economy requires while it appears the government is just happy it got something through the U.S. Congress. I think business executives do not necessarily see this as a political issue, though. If I know someone is going to bail me out no matter what stupid stuff I get into, I am likely to be even more daring than I would be if I knew I was on my own. That's a fact of life. Businesses know, however, that real growth comes from the innovation they can come up with in products and business processes. The government is hardly the place to look for this. I am not against injecting some form of stimulus into the economy. I am just at this point beginning to wonder if it is the best way to energize companies.
I hate putting myself in the bracket of either Republican or Democrat given that they are both EQUALLY responsible for the mess that we are in today in America.
I kind of look at myself as a fan of Small Government and I am a big fan of Ron Paul and his thoughts.It hardly matters that he belongs to the Republican Party. I am also a big fan of Chris Christie.
But I also know there are enough clowns (who want more and more stimulus) in both parties...
Hopefully the anti-incumbency vote in the mid-terms tommorow will be so strong so as to make the politicians in DC sit up and LISTEN to voters and their real world concerns rather than pander to clowns like Paul Krugman and Larry Summers.
Hello, Ashish, nice to see you on this board. If you are not the Ashish from IE, then you sound just like him. I wonder to what extend people are influenced by party politics when selecting their answer to the poll. Generally, Democrats are more in favor of government spending and involvement, while Republicans take the opposing point of view. That is something to bear in mind with Election Day tomorrow.
Bolaji, I found your post very clear and convincing.
I agree entirely with what you are saying here in this post.
"Sure, it can be argued that the assistance the US, EU, China, and Japan poured into the global economy following the financial and real estate market declines of the last years helped forestall a deeper and more distressing downturn, but officials also have to know when to let regular business activities resume and take away the training wheels. In the case of the high-tech sector, no amount of economic stimulus will help if buyers, whether corporate or consumers, have doubts about the future. The house-cleaning that has started at the personal and corporate levels must go on unimpeded and only then will real growth resume.
At the moment, what we have is a so-called helping hand that might be drowning us all in assistance. We can't know exactly what to plan for or how, as long as Big Brother keeps masking the big view of actual, fundamental demand."
My question is do you have a direct line to the White House who seem to be influenced almost exclusively by Mr Paul Krugman(and is begging and screaming for more and more and more stimulus)??
Keep stimulating the economy until the US Dollar dies.That seems to be their theme,regardless of how badly Middle-Class Americans are really doing today,where Real world Inflation(stuff they eat everyday as well as Gasoline) are showing Double Digit price rises over the last one year alone.
This is very much against the fantasy world which the Federal Reserve economists and Paul Krugman are living in.Is it any wonder middle-class Americans are so angry and the anti-incumbency vote in tommorow's mid-terms is going to be so strong???
I think the reason why some people believe that another stimulus or continuation of govt. intervention in business would be a good idea, is because of what happened over the last one and a half years. The American Recovery and Reinvestment Act with about $800 B seemed to act only marginally and the unemployment in the US rised above 10%. In came demands for other stimuli, tax breaks for companies hiring and the Jobs Bill etc. and more dollars were spent by the govt. This gives an impression that things can be sorted out with stimulus every time, which appeals to people who know little about the economy and debt as a whole. I think, if the economic and fiscal and monetary policies are solid, no stimulus or little of it was required to lift out of the recession. Some of the developing countries, like India, are perfect examples.
Dennis, So how do we explain the 50% plus of people who still want some form of stimulus?
I'm not sure! Perhaps it would be helpful to hear from some people who voted "yes," to the poll?
I was curious too and after doing a bit of googling I found some recent opinions from people who think there should be a second stimulus plan.
One article said that the reason we need another stimulus to force banks to be more liberal about loaning money out, I suppose in order to fund growth for small business.
Another said that economists think there should be another stimulus focusing on infrastructure upgrades, because there are "two trillion or so dollars of unaddressed infrastructure needs."
While I agree that there are many worthwhile infrastructure projects out there, I'm not sure exactly how throwing tons of money at that now is a fix-all, exactly. One example, while it'd be great to have high-speed rail... it's really questionable how the execution of that would work out in reality: how long would it take to complete? How much would it cost? Would it ever be profitable?
And perhaps my opinion of infrastructure projects is a bit skewed because I live in NYC, and the major subway expansion project here is still years away from completion and vastly over budget. And it will almost certainly never be completed as originally planned; they'll be lucky to have half of it up and running ten years from now. So even if some of these infrastructure projects did get funding, it's not as if that's a guarantee they will actually be completed.
Again, I'm a little mystified as well. Hope to hear from some people with different opinions on this!
Dennis, So how do we explain the 50% plus of people who still want some form of stimulus? I know 37% say "we've had enough" and another 12% are saying "don't know" but a majority still wants some form of government assistance for the economy. I am trying to understand the thinking of the group that is still supporting a form of bail out. At this moment, most business executives don't seem interested in government bailout-fueled recovery because of the issues I discussed in the blog. It would be interesting, on the other hand, to identify the demography of those who still want further stimulus.
That's why, as commendable as it might be for government to want to stretch out its supportive hand to businesses, the best way for officials to help, at times, is to step out of the way.
I agree. Like you say, at some point officials need to know when to take the training wheels off.
There are also political issues at play here. I believe there is much less support for economic stimulus programs these days. In addition, if you're trying to increase confidence regarding the economy in general -- especially in regards to consumer spending -- I don't see how enacting new stimulus programs will help.
I think the "our view is just kind of get out our way and let us do what we do" quote is an opinion shared by many business leaders, and I agree with that philosophy as well.
Let's just deal with the current economic reality and move forward. Taking those training wheels off may be scary for some, but in time we'll wonder why we even needed them in the first place.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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