Lately it seems that Kevin Brady is earning a semi-permanent spot in the Fox "News" echo chamber. Appearing with Bill Hemmer on "America's Newsroom", Brady cited the recent jump in unemployment figures as absolute proof that the federal stimulus package is totally ineffective. Maybe Brady needs to be reminded that economic stimulus is not instantaneously effective. In this recession, as with past recessions, job loss is a symptom that comes later in the downturn and is usually the last indicator to improve. But those sorts of facts would just get in the way of Brady's performance.
Then Mr. Brady decides to show off his economics degree (that's a joke). He claims that "Washington" represents an "invisible hand" that is impeding industrial progress. How can this be, you might ask? Is this the same Washington that passed a historical $787 billion dollar stimulus package that is making investments all over the country? Ah, Mr. Brady explains, it's because business owners are petrified of the federal government to the point that they cannot transact business.
"Businesses are delaying investment decisions because they fear Washington." "Businesses aren't willing to risk those dollars and those decisions in a very uncertain government climate."
I guess all of that fear of investment can be evidenced in the steady increase in the secondary markets this year. Since bottoming at a 12-year low March 9th, the S&P 500 has gained 51.2%, and the Dow has gained 45% as of Friday's close. After hitting a six-year low, the Nasdaq has gained nearly 61% (CNN). Again, those pesky facts are just not a fan of Mr. Brady.
Despite evidence to the contrary, if businesses are really holding back out of some unspecified "fear", they aren't warranted in doing so. The nature of our free market system is that there are inherent risks everywhere. Those risks include uncertainty, which is manifested in many ways, the least of which is government regulation. Good businesses will deal with it, account for it, or in some cases capitalize on it.
Brady: "Right now, what I think Washington is doing, is scaring the heck out of small businesses."
Actually, the only one giving anyone a reason to be scared is Mr. Brady and is GOP cronies. They have been ginning up fear by spreading lies and delusional paranoia on just about every initiative that the Obama Administration has proposed. Whether it's consumer protection to prevent another economic mess, better access to healthcare, or a speech to kids about staying in school, Kevin Brady has been right there drumming up wild accusations that have no basis in reality or the truth. And now he wonders why some business owners have expressed concern?
I guess when all else fails, just blame it on the "invisible hand". To anyone who took economics in high school, you probably remember that reference as something described by Adam Smith, the father of modern economics. But when Smith used it, he was making his point that economic actors abide by an unseen force that eventually maximizes utility without the need for government regulation. Government is not the "invisible hand." Kevin Brady must have been absent the day they taught economics.
Weak, Brady. Very weak.
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