The phrase 'perception is reality' is overused generally. But perception can be reality in monetary policy. The bond market doesn't act merely on what it sees. It acts on what it expects of the Fed or the government.
When you do something moral and upright and wander off by yourself, well, everyone doesn't always follow you, do they, right? You pat yourself on your sanctimonious back but it doesn't mean the crowd rewards you for doing what you think is right.
We're in a kind of vicious cycle where the media tell the politicians, and the politicians tell the people, that perception is reality, and the perception of saving dooms a politician. I don't believe perception is reality, or that all Americans think that.
When you see government leaders really bullying business, you know that government's economic policy is failing. They get angry and they get desperate.
Coolidge believed that government officials who tell themselves that spending benefits the economy delude themselves and the citizens. Government budgets promote human freedom.
In the end, all new schools, public or private, snobby or not, add value to the education market, making it bigger and more efficient, in the same way that Zuckerberg added wealth to the economy even for non-Facebook fans.
To investors, job creation is a second-order effect. Market participants care first about interest rates, exchange rates, bond prices and the one great factor that affects all three: the long-term solvency of a bond company called the U.S. government.
The New Deal exists principally on an emotional plane for Obama. To him, the New Deal is something you play like a song, to make you or your constituents feel better.
The most remarkable thing about Calvin Coolidge is that he served for 67 months, and when he left office, the budget was lower than he came in. In real terms - in nominal terms with vanilla on top - he cut the budget year over year.
The Grand Old Party's abiding affection for a 'bigger and better' presidency isn't entirely logical. After all, the Obama presidency commenced with an effort to reenact the Hundred Days. Yet President Obama's first-term economic performance itself was not 'big' but mediocre - tiny, even.
I'm always for lower taxes because lower taxes make people want to do things. Less burden, more fun, and economics is about people wanting to have fun. Growth is fun for people in the marketplace.
I think some authors suffer from a need to try to prove that they're clever and educated. I try not to suffer from that. I would rather sacrifice my own narrative in the exercise of writing a biography. So I'm not worried about whether I'm clever.
Eventually the dollar won't always rule. Eventually there will be a challenge to the United States and it will have to be like other countries that are a bit concerned about their currency, and then have to ratchet back in order to - right, in order to sustain. We just haven't reached that point yet.
Democrats who see virtue in the estate tax are doing the equivalent of aborting future enterprises. They deprive businesses of oxygen with their support for capital gains taxes and disregard for contracts.
A while ago I did a story comparing the change in employment rates in recessions in the U.S. and in Europe, and what I found was that America fired a lot of people and rehired a lot of people faster than Europe. That difference is disappearing, and that is a problem.
