Wednesday, January 24, 2007

Economic Dynamism

I realize that the President's SOTU address was intended to push forward a bi-partisan spirit with feel good policies while at the same time conveying a sense of strength and determination to the nation and our enemies that we are prepared to push onward to victory in Iraq. While this talk is necessary, I think he would have had a better time and gained more traction with a large national audience if he had spent more time talking up our dynamic economy rather than just offering mere generalities. I guess since the President has a modest streak on touting the robust economy(Much like his Dad), it comes down to bloggers and others to point out the booming economy. One place that seems to lack the timidity of talking up our good economy is the good folks at the WSJ editorial board who made the following observation in today's paper:

The big economic story going into this New Year is that growth is accelerating. Jobless claims have dipped, as the labor market stays tight amid a low 4.5% unemployment rate and rapidly rising real wages. Corporate profits continue to defy gravity, growing at nearly double-digit rates some five years into this expansion. Economist Ed Hyman's ISI Group reports that as of last Friday some 57% of companies had beat profit expectations for the fourth quarter.

Then there's the "trade deficit," which was supposed to have produced a crisis any day now but is instead contributing to faster growth as American exports soar. Peppier growth abroad is helping, especially in Europe, assuming Germany's big increase in value-added taxes this month doesn't get in the way. Oil prices have come down, and even the housing slump seems to have stabilized in some parts of the country.

This might be seen as pure "happy-talk" by a lot of the populists but the simple fact is that Republicans are in a win-win position with the American people when they point out the economic dynamism that they have set off by promoting policies that lead to the unleashing of the powers of the free-market and getting the government off our backs. It worked for Reagan and would be a sure winner for the current President.

*John O'Sullivan has a good piece in the Chicago Sun-Times which sums up my whole argument on leaders touting their free-market principles and the results such policies. He sites three of my favorite leaders whole espoused such positive thoughts.

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