MSM MEME PREDICTOR: Goolsbee’s departure is an overture to the private sector. Obama gets it.
As with everything else in the Obama admin, it’s a con.
WASHINGTON TIMES: “Mr. Goolsbee says the administration is committed to “help the private sector stand up and be the driver of recovery.” That would be cause for optimism – until you see the policies being advocated. The Obama administration is still pushing schemes like an infrastructure bank, more regulations and tax incentives to jump-start investment in favored portions of the private sector. These stale, Washington-centric ideas have never worked anywhere they have been tried, but ivory-tower academics like Mr. Goolsbee have nothing else in their bag of tricks.
The numbers show that American businesses are holding back because the administration’s reckless policies are fostering economic uncertainty. Corporate profits were reasonably healthy in the last quarter of 2010 at $36.9 billion, though profits slowed in this past quarter to $21.9 billion. At the same time, banks are awash in reserves ($1.5 trillion in April) but they still aren’t lending. The market is holding back, and the result is inadequate job creation.
Banks will not lend and firms will not hire when they think Washington is going to change the rules of the game by imposing new regulations or hiking taxes. Temporary gimmicks, like the payroll tax holiday, don’t provide enough of an incentive to undertake long-term investment and hiring decisions. Tax incentives granted to favored industries won’t increase efficiency in the economy either, not to mention the damage they do to the rule of law and trust in institutions.”
[READ “Goolsbee heads for the hills” at the Washington Times]