Accounting & Investing Info for San Antonio A & M
Thursday July 15, 2010
I remarked that Tom Sowell might be the single brightest guy in America. Today's Sowell column, Signs of the Times, is a good example. Prof. Sowell points out that a Business Week article reports that despite billions of stimulus dollars, firms are sitting on billions in cash. They are unsure what the Administration will do next, so they do nothing. This will explain the lackluster job market in which employees are the new liability.
Wow Mr. Soweill definitely brings a different view point to the Obama administration’s actions. I always knew that deciding to introduce new radical types of governance that would require massive spending of tax payer’s money would eventually have some negative effects, but I never thought it would negatively affect a “healthy inflation.” So I read this article about a week ago, and wanted to comment on it, but there was one thing that I was unsure about. The question that I kept asking myself is, “What is wrong with failing to produce inflation?” Now having the conception that rising inflation is bad, I’ve learned recently that having little to no rise in inflation is much worse. I’m going to let the experts explain why, I’ve found a article on yahoo finance that coalesces really well with Sowell’s article, here is the link…http://finance.yahoo.com/news/4-Reasons-To-Fear-usnews-2745725653.html?x=0 After reading this article you’ll have a much clearer understanding of why all this stimulus spending and the anti-business rhetoric that the Obama administration can’t seem to stop abusing, will have heavy ramifications that are yet to be seen. The basic statement that I’ve gathered from looking through Sowell’s viewpoint is that you can’t change a capitalist’s actions. If a capitalistic society is paranoid about what the future holds as far as whether or not a economy will recover and become healthy again, or more over whether the current administration will keep on lashing out on various industries, the capitalistic society will do what it knows best. Don’t spend the money, and wait for better times. Mario Sarabia
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