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Its not the government's job. Nor is it somehow equipped to provide a better assessment of the economy than the citizenry. Its only equipped to present an ove
by stretchwithme 15y ago
Its not the government's job. Nor is it somehow equipped to provide a better assessment of the economy than the citizenry. Its only equipped to present an overly optimistic view, which it has consistently done, as leaders tend to try to get re-elected. An inaccurate view is not helpful.
I don't think investors need government to reassure them. They need independent judgement that is not swayed by what the crowd or the leader of the crowd thinks. They need to assess facts.
Those that easily lose confidence sell too cheaply to those who don't lose confidence. And, in the process, increase the average confidence with which dollars are invested.
And the same thing is true of those who listen to the government versus those who pay attention to facts.
Over time, those that practice what works are rewarded and control more of the decisions. So, government handholding and back rubs are irrelevant.
Much more relevant is confidence that the government isn't giving deals to its friends. Bailouts and other goodies for those lobbying the system with lots of money.