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To: Siena Dreaming
When the bias goes the other way and more political power is tilted toward the pro-business faction, businesses hire.
This is where we fundamentally disagree. I don't subscribe to the confidence or good-feelings theory of economic growth where investors and market actors act on their perceptions of, or feelings about, the political or social climate. Some probably do, but they don't last long as they tend to pass quickly into a richly deserved bankruptcy. People invest when they can expect a reasonable return on their investment--that's it, that's the only reason. Yes, Republicans won the house in November, but the Senate, the White House, and the entire administrative base of the federal government remain in the hands of the other party, and even if the Republicans now ruled everything, the structural issues occasioned by the crash, or that caused the crash itself, would stubbornly refuse to disappear by act of electoral fiat, and our fiscal crisis would remain every bit as acute, and the costs of addressing it every bit as expensive.

We have a long, long way to go.
39 posted on 11/11/2010 11:49:34 AM PST by casuist (Audi alteram partem.)
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To: casuist
but the Senate, the White House, and the entire administrative base of the federal government remain in the hands of the other party

A greatly weakened other party which is just about out of political capital. All the lies that got them this far just are no longer going to fly. You don't take into account public opinion which is what the other party needs to function. Bottom line...if you believe that the far-left has mostly shot their wad, you will be fairly optimistic at this point and will see that if Obama gives on his tax-cut pledge it shows he is pretty much out of capital as far as manipulating public opinion. But if you believe that what the Dems say still resonates as much with the public you will be pessimistic.

You don't take into account good feelings. However, good feelings are important when you're talking about public consumption and factually DO lead to people opening their wallets. For robotic investors who only spend when dry facts lead, they will also have plenty of reason to see that hiring makes better sense now than it did a year ago.

43 posted on 11/11/2010 12:03:33 PM PST by Siena Dreaming
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