Fareed Zakaria admits in the latest Newsweek that he supports government stimulus programs, including a ?second? stimulus (wouldn?t this actually be number three or four?) for state and local governments.
But Zakaria, to his credit, is willing to look for other factors that might contribute to economic growth. And he identifies a key problem standing in the way of growth:
The key to a sustainable recovery and robust economic growth is to get companies to start investing in America. So why are they reluctant, despite having mounds of cash lying around? I put this question to a series of business leaders over the past few days. They were all expansive on the topic, and all wanted to stay off the record, for fear of offending people in Washington.
Economic uncertainty was the primary cause of their caution. ?We?ve just been through a tsunami, and that produces caution,? one said to me. But in addition to economics, they kept talking about politics, about the uncertainty surrounding regulations and taxes.
What?s the solution to economic uncertainty? Some might suggest a clear government policy that limits Washington?s interference with market processes. Zakaria, on the other hand, thinks the president ought to try to fool business leaders. ?Obama now needs to outline a growth and competitiveness agenda that will seem compelling to the American business community.?
Oh, well. At least Zakaria got the economic uncertainty part right.
