Sunday, June 14, 2020

Larry Kudlow and Jake Tapper: Discuss Economic Recovery

Senior White House Economist Larry Kudlow discusses the potential of economic development growth. While no one knows for sure what happens because economic projections are a little like "looking into a crystal ball" you can look at economic indicators. For example, buying houses at low interest rates is a level of optimism. One might look at what companies are growing and what companies are suffering the most. As states open up we may also better determine the extent of economic damage.

Of course all of this is dependent on not having a major spike, international conflict, civil unrest, etc.... These are unknowns. On the flip side if we focus more on developing businesses, removing racism and bigotry (Sorry I see them both as problems), and developing a strong and fair capitalistic system without the "wet blanket" dampening approach that neglects the natural devleopment of small businesses we may have a fabulous economy in the near future.

Large businesses are great for our economy but they also have influence and financial power. Laws seem to be skewed to help these large businesses succeed. However, we can't have creative destruction if there is an environment that hampers new small businesses. There must be breaking down and regeneration for a cycle of growth. Many of these businesses may become large and in turn become, according to transactional theories, too inefficient and break apart by natural market forces.

Its a cycle. So rethinking our economic system for egalitarian entrepreneurship opportunities through low interest loans and better investment mechanisms can make a difference in creating strong economic recovery and sustainability. It also helps companies gain new sources of innovation. Having an economy that can balance big, medium and little businesses into clusters systems can help improve overall innovative growth.

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