Americans have welcomed the Obama era in the same spirit of hope the President campaigned on. But after five weeks in office, it's become clear that Mr. Obama's policies are slowing, if not stopping, what would otherwise be the normal process of economic recovery. From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence -- and thus a longer period of recession or subpar growth.It's interesting to contrast the gloominess of markets with the yet very positive public opinion, which appears to be much more lenient and, I would guess, affected by political sunk cost irrationality. It'll also be interesting to see if voters will be time consistent in their positive and tolerant initial judgment of the Obama administration.
Wednesday, March 4, 2009
This graph shows the Dow Jones performance since Obama's inauguration:I don't think that the Dow Jones should be used to evaluate the performance of any government, yet the dismal market reactions combined with high expectations before inauguration indicate that the economic philosophy and policies of the new administration have failed to convinced major economic players. The WSJ for example agrees: