Even after the November 2012 election results were known, non-US-based companies looked forward to investing capital in U.S. facilities in 2013. And they did just that. This sentiment certainly was not shared by U.S. investors. Thus, a Site Selection survey of American corporate real estate executives was overwhelmingly pessimistic about a second Obama term.
The United States has been a tremendous magnet for attracting foreign direct investment. Roughly 17 percent of the world’s $22 trillion stock of FDI is deployed in the U.S. economy — triple that of the next largest destination. With the world’s biggest economy, a skilled workforce, an innovative culture, and deep and broad capital markets, the U.S. has enormous advantages to attract investment from the world’s best companies. But those advantages have been eroding.
The Business Roundtable, an association of chief executives, recently proposed that the United States is the world's innovation leader because of a commitment to basic research, a world-class workforce and a climate that rewards innovation. This sense of pride has been eclipsed by a feeling of economic pessimism manifesting itself in a perceived lack of innovation from our private sector, and especially by our entrepreneurs.
President Obama received much criticism during the 2012 campaign for his remark, “You didn’t build that.” Although he uncharacteristically said it in a fairly clumsy way, what he meant was that for every proud self-made entrepreneur there is a huge web of supporting institutions and infrastructure built by the government.
I've seen a lot of presidents come and go. The vast majority of them have made some type of mistake that hurt their popularity as well as their legacy, but there hasn't been as big a mistake as President Obama's mishandling of so-called Obamacare. To his credit, the president has been willing to embrace the comprehensive health plan and allow it to be directly linked to him.
Monthly U.S. headlines trumpeting the death of inflation hide a painful truth for American families: rapidly rising food prices. News reports rarely mention this pain because economists’ preferred inflation metric, so-called “core CPI,” omits both food and energy due to concerns about their volatility. Although this omission might make sense from a purely economic perspective, it does a disservice to voters.
When President Obama gave his recent address at Knox College, he lamented the dismal state of middle-income families, whose real incomes have been stagnant or falling. He promised new policies that would restore upward mobility and improve prospects for growth and employment. However, he ignored the negative effects of the Federal Reserve’s unconventional monetary policies.
The U.S. economic recovery remains anemic, so President Barack Obama wants Washington to spend more money. Of course, if the economy was booming, he would want the federal government to spend even more money. Nevertheless, the favorite justification for public expenditures these days is to “stimulate” the economy. The fact that $5 trillion in federal deficits during the president’s first four years in office didn’t create a buoyant economy doesn’t matter.
August 10th is a special event in the energy industry. It marks the tenth year since the famous Northeastern blackout plunged millions of people into total darkness. While some small pockets of the region escaped unscathed, the vast majority of the homes and businesses suffered some type of financial loss. The question is, ten years later, what have we learned?
The Congressional Budget Office has fiscally scored the Senate’s immigration bill, S. 744, and found that it will decrease fiscal deficits over the next 20 years—giving a huge boost to reform proponents. In line with criticisms, the CBO departed from orthodoxy and assumed that S. 744 would affect economic growth (i.e., they dynamically scored the bill)—arguing that the economic and fiscal gains from immigration reform are clear.
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