Well, it’s a new year with the same old problems: the middle east is blowing up, the economy is tanking and we’ve got an incoming administration who wants to do something about it. Yes, that’s a problem. As I spoke about in my blog “Dear President-elect Obama: Here’s How to Get the Economy out of the Ditch – Knowledge@Wharton,” the problem with trying too hard to solve problems is all the unintended consequences. We need an economic Hypocratic oath: “First, do no harm!” The easiest way to do no harm is to simply CUT taxes on everything. The worst possible scenario is something that has never happened which is the government would actually have to do with less money. This has never happened when we have cut taxes in the last 40+ years. It has always led to increased revenue. But let’s just presume the impossible happens. Would the government actually do with less money? Of course not! They would do what they are doing now: spend like drunken sailors (no offense to sailors, drunken or otherwise).
But there’s something about this article that confuses me greatly. Again, it’s near the end of the article, almost as if it’s trying to hide. Almost like someone felt the need to report it but didn’t want to give it much importance. Look for it. . .there it is. . .Obama is predicting double-digit unemployment. I thought this was the time when the earth would begin to heal itself and the waters would begin to recede (are we flooded?!?). That’s what he said when he spoke the night he secured the nomination. It seems that global reconstruction is easy for him and yet macroeconomics is more challenging. Hopefully, he’ll pick that up too.