The Economy

The Economy Needs Some Optimism

Tax cuts may help. Interest rate reductions may help. Reduced spending by the federal government would definitely help. But what the US economy probably needs more than anything else right now, is a good dose of optimism.

When the general mood is optimistic, people spend money. Companies start new projects. Investors put resources in the stock market and the economy grows. When the mood turns dark, consumers worry and delay buying new cars. Companies reduce R&D spending, cut back on the purchase of new computers and lay people off. Investors roll their money into certificates of deposit. The stock market goes down. Now consumers worry even more and the economy slows.

A lot of bad things are said about Bill Clinton. But the fact that the economy boomed while he was in office was probably not a coincidence. President Clinton was a charismatic, die-hard optimist. People felt confident while he was in office. The rich as well as the poor. They made money, spent and invested. Even Republicans did. Businesses grew and the economy hummed along.

Now Clinton is gone, and everyone starts worrying again. About moral values, about teenagers, about national security and about the stock market. And the economy slows.