The economy has recently shown some signs of stalling, with the unemployment rate backing up to 9.1%. Again, there are calls for the President, Congress, and other policymakers to “do something.” Are there some new rabbits that should be pulled out of the hat?
The U.S. economy will recover if business and innovation are given a chance. It is time to remove the economy’s “training wheels” and halt the various “start-stop” stimulus props, such as the temporary housing incentives, which only added to volatility. The President should concentrate on some of the initiatives already begun. These include spurring Congress to approve free-trade agreements with South Korea, Panama, and Colombia. Mr. Obama’s plan to create a “21st-Century regulatory system,” including the elimination of many excessively costly rules, deserves top attention. The process of approving patents and new drugs should be accelerated. Sometimes less is more.