Dallas Fed’s Fisher Says U.S. Economy ‘Hog-Tied’ by Government

[TomCADem]

Source: Bloomberg

“I am not a proponent of ever-increasing government spending,” Fisher, who will hold a vote on monetary policy next year, said in the partial text of a speech in Sydney today. “I mention this simply to illustrate a point: Unlike in most recoveries, government has played a countercyclical, suppressive role. The inability of our government to get its act together has countered the procyclical policy of the Federal Reserve.” Fisher said the views expressed were his own.

A deadlock over the federal budget led to a 16-day partial shutdown of the U.S. government last month. The nation’s economy probably slowed last quarter and employers hired fewer workers in October, indicating the expansion was losing momentum before the shutdown, economists project reports to show this week.

“The economy of the United States is hog-tied by a government that is sadly ineffective and, in fact, counterproductive,” Fisher said. “We have a government that hasn’t been able to agree on a budget in five years; that has historically, under both Republican and Democrat presidents and Congresses, spent money and committed itself to fund long-term programs without devising revenue streams to cover current costs or fund future liabilities.”

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“One could say that GDP would have risen at 3.2 percent had government expenditure increased at the same rate as private expenditure,” he said. “Or, more modestly, if government spending had just been held constant, instead of contracting, GDP would have grown at an annual rate of 2.6 percent.”

Read more: http://www.bloomberg.com/news/2013-11-04/dallas-fed-s-fisher-says-u-s-economy-hog-tied-by-government-1-.html

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Here is a guy who you would think should lean totally Republican, yet when you hear his analysis, you can't help but conclude that our economic problems are due to the reality denying folks who are in today's economy party. Insisting on austerity as we emerge out of a recession? Check. Shut down the government? Check. Refuse to consider increasing any revenues? Check.

[truthisfreedom]

1. You let shitheads into government, you get shit.

That's the unfortunate truth.

[JDPriestly]

2. K&R. We need to sequester Fox News. (I'm joking. The First Amendment does not permit it.)

[Major Nikon]

3. He is a Democrat

Just sayin'

[DeSwiss]

4. The economy is not being ''hog-tied'' by the government.

- Our government feeds the hogs, it's the people who are tied-up. And fed up.

[Laelth]

5. I agree with Fisher. k&r for exposure. n/t

-Laelth

[bemildred]

6. That is the Tea Part agenda, isn't it? Hamstring the government? nt

[Cryptoad]

7. Not until

we get control of Congress and the White House can we make the changes that need to be made to bring back the Middle Class!

We have to work harder to get out the vote !

[gopiscrap]

8. fucking asshole

let's be simplistic and blame the government

[happyslug]

9. Here is the actual Speech

http://dallasfed.org/news/speeches/fisher/2013/fs131104.cfm

Here are three paragraphs, he is almost calling for INCREASE GOVERNMENT SPENDING as oppose to the cut in spending that has been the result of the last five years:

I say that the economy of the United States is hog-tied by a government that is sadly ineffective and, in fact, counterproductive. We have a government that hasn’t been able to agree on a budget in five years; that has historically, under both Republican and Democrat presidents and Congresses, spent money and committed itself to fund long-term programs without devising revenue streams to cover current costs or fund future liabilities. It is a government that is more effective at forming commissions to discuss what they might do—the president and Congress just recently have agreed to their ninth such commission in three years—than in getting anything done to provide businesses, employers, workers and the citizenry the certainty they need to confidently plan their futures.

Under these circumstances, it is no small wonder American businesses are not expanding and growing jobs at the pace we at the Fed would like to see. It is no small wonder that our economy is growing at a substandard pace compared to previous recoveries. It is no small wonder that the most expansive monetary policy the FOMC has ever engineered has been hampered from accomplishing what it set out to do. In short, while the Fed has been moving at the speed of a boomer in full run, the federal government of the United States has at best exhibited the adaptive alacrity of a koala (without being anywhere near as cute).

This can be demonstrated with some simple math from the most elementary formula for calculating gross domestic product (GDP). Private expenditures on goods and services increased at a 3.2 percent rate over the expansion to date, whereas GDP has increased at 2.2 percent. One could say that GDP would have risen at 3.2 percent had government expenditure increased at the same rate as private expenditure. Or, more modestly, if government spending had just been held constant, instead of contracting, GDP would have grown at an annual rate of 2.6 percent.

By "Boomer" he means a Kangaroo, thus the Fed has been going full speed to get the economy going, but CONGRESS has done all it can to STOP the recovery.

He is also a Democrat, ran against Senator Hutchinson in 1994 (having run in 1993 in the Special Senate Election in 1993, coming in fifth behind Hutchinson). He has opposed "Quantitative Easing" and has been basically saying only increase spending by Government can get the economy going.

http://en.wikipedia.org/wiki/Richard_W._Fisher