Something that continues to surprise me is how strongly President Obama’s most ardent followers disagree with him. For example, the president has repeatedly expressed his view that the reason for persistent unemployment is structural rather than due to a shortfall in demand. I’ve posted on this before—you can look it up yourself.
Here’s another example. The president has embraced what his supporters have been mocking as “the uncertainty fairy”:
“In conversations I’ve had with CEOs, what they tell me is, ‘We are ready to invest and we’re ready to hire, but we want a little bit of certainty out there,’ ” the president said during an interview with Bloomberg Television. “I think businesses are going to be ready to hire. We’re seeing pretty strong consumer confidence, despite weaknesses in Europe and even in Asia.”
I honestly don’t know what role uncertainty plays in our present economic doldrums. It may be a lot, it may be a little. I don’t think it’s nothing.
However, here’s my question. Will President Obama’s proposals for the avoiding the “fiscal cliff”, if adopted exactly as he’s proposed, produce more or less uncertainty? I think the answer is more because while it acknowledges a fiscal problem it doesn’t really address the full scope of the problem. That suggests there’s more to come, another shoe yet to fall.