Given that the preceding recession was somewhat mild, and the result of a burst bubble, you'd think that the cycle would be over. Normally, such significant stimulus would send the market and business through the roof; here, it has hardly caused an upward blip.
However, I believe that we have not recovered because of a lack of confidence in the Bush policies. So much of business growth starts with confidence; confidence to start new businesses, confidence to expand and hire, confidence to take risks. But being on a constant war footing has eroded that confidence. Now, add to that the ballooning deficit (an indication of growing fiscal irresponsibility), and business confidence has taken a near-mortal blow.
Now, consumer confidence seems to be following the same road. The economy is dangling on the paradoxical consumer spending and housing. I fear it is whistling in the graveyard...
I believe we won't see a significant recovery in jobs until the international situation is stabilized. Unfortunately, by that time, other economies may take away our growth, especially in tech. Could be a historical shift of economic power... |
