• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Barron's Roundtable Market Pros Blame Washington for the Economic Doldrums

    Barron’s magazine published their mid-year round-table discussion with ten money managers and financial market experts on Saturday. The ten are unanimous in their belief that slower economic growth is in store for the second half of 2011.

    • Slower economic growth makes it harder to find or keep a job.
    • It means less money is going into paychecks to buy life’s necessities.
    • It means less tax revenue for the deeply indebted U.S. government.
    • It means less opportunity for today’s young people who will have to pay the national debt back.

    Many of the Barron’s roundtable panelists think they know why the economy has less wind in its sails, and they blame bad policy decisions by the U.S. and other governments for continued economic weakness.

    Felix Zulauf, President of Zulauf Asset Management says:

    From Asia to Europe to the U.S., all the important economic indicators are rolling over. Some blame the Japanese tragedy; others, the weather. It is more than that. It is the result of policy decisions. Economic growth could slow to a crawl well into early next year.” –Felix Zulauf, President Zulauf Asset Management

    Another says the U.S. government is wasting its money:

    What bothers me now is we’ve spent trillions of dollars but haven’t created any jobs. We are pursuing the wrong economic policies. Some 28% of homeowners with mortgages are underwater. Consumer confidence is dropping off the map.”—Scott Black, Founder and President, Delphi Management

    A third famous money manager says the policies of the executive branch are standing in the way of businesses:

    The Obama administration is anti-business. The president is good on his feet. He speaks well. He has a sense of humor. But he is anti-business because he never grew up with business.”—Archie MaCallaster. Chairman, MacAllaster Pitfield MacKay

    A fourth blames the policy decision to over-regulate for the economic sluggishness:

    The question is what happens next. Barack [Obama] has to start making the U.S. competitive by realizing we can’t over-regulate.”– Mario Gabelli, Chairman, Gamco Investors Inc.

    Finally Marc Faber of Marc Faber Limited gets to the heart of the problem, entitlements, and suggests a hard-to-swallow remedy for Washington D.C. elites:

    If you lived beyond your means by borrowing, you need a period of deleveraging. That has happened in the U.S. only in the corporate and household sectors. Private borrowing has been replaced by government borrowing, which means the overall level of debt hasn’t been reduced. That needs to happen. The U.S. needs to cut entitlement spending meaningfully. It would be best to impose a flat tax and cut government expenditures by 50%.”—Marc Faber, Managing Director Marc Faber Ltd.

    The star investors on Barron’s roundtable blame Washington’s poor policy judgment for the economic mess. However, The Heritage Foundation knows what policy changes need to be made to get the country moving in the right direction again. For the Heritage Foundation’s plan. Saving the American Dream, on how to fix the American economy and save today’s children from an inherited economic quagmire, click here.

    Posted in Economics [slideshow_deploy]

    5 Responses to Barron's Roundtable Market Pros Blame Washington for the Economic Doldrums

    1. George Colgrove, VA says:

      The U.S. needs to cut entitlement spending meaningfully. It would be best to impose a flat tax and cut government expenditures by 50%.”—Marc Faber, Managing Director Marc Faber Ltd.

      Finally, the "smart" people are catching up tot he rest of us. This is what American taxpayers have been saying since 2006!

      Look who is asking us to increase the debt limit:

      Liberal Media

      Communist China

      Defense Contractors who are making a mint

      Federal workforce

      Look who is saying NOT!

      - The American People!

      Who do you side with?

      Last week we learned that the unfunded mandates total over $61 trillion.

      This week we find out if you add the programs that did not fully fund the bailouts we are over $100 trillion!

      Time yet to cut Boehner, Ryan, Paul, and company?

      From your list:

      •Slower economic growth makes it harder to find or keep a job.

      •It means less money is going into paychecks to buy life’s necessities.

      •It means less tax revenue for the deeply indebted U.S. government.

      •It means less opportunity for today’s young people who will have to pay the national debt back.

      This is what I have been saying for a year!

      Do not raise the debt ceiling or it will be a lot worse in a few months – no less next year.

    2. Sidney A Bordelon, M says:

      Stop spending so much! Get the economy under control.

    3. SteveH, Texas says:

      We will not cut spending until congress stops tacking anything and everything onto a bill.

      Bills get amended with many other (unrelated) bills. These amendments can't stand on their own, so they get tacked onto more popular bills. This is part of the "game" of politics to buy votes. And it must stop.

    4. SteveH, Texas says:

      Congress needs to stop tacking frivolous proposals to major bills. The proposals couldn't pass on their own merits, so they are tacked onto popular bills.

      For example: H.R. 2642 was introduced in June, 2007 to finance military construction and Veterans Affairs. Since then, Congress has added 230 pages of amendments to what was once a 50-page bill.

      How can anyone wonder how we got into this debt?

    5. Pingback: Morning Bell: Unemployment Is No Laughing Matter | The Foundry

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×