Saturday, May 04, 2013

A Goldilocks Recovery

"Ahhh, this porridge is just right." ~ Goldilocks

I'm starting to believe the U.S. economic recovery is "just right."   It hasn't been too fast leading to bubbles that would ultimately collapse.  It hasn't been too slow leading to a major depression.  It has been in the middle, a tenuous recovery that occasionally shows signs of potential strength.  The economic recovery just keeps grinding upwards.

Although he probably didn't intend to have such a slow recovery, President Obama deserves all the credit.  His adminstration's policies have kept private business cautious, which has limited investment, hiring an spending by many companies.   Pork stimulus projects, Obamacare, debt ceiling crises, and sequester cuts have made the future unclear for many businessse, leading them to grow much slower, but still grow,  than in previous recoveries.

The result has be a slow healing economy, which in hindsight has been a good thing.  Maybe this will break the boom/bust economic cycle the U.S. has experienced the last 15 years, and lead to another big advance in the economy over the next 20 years.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

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