“A recession can be a good time to grow a business”. Thus is the opinion of Lord Young, a British cabinet minister under late Prime Minister Margaret Thatcher and still having his own office in Downing Street. Lord Young’s comments are stated in a report to be published this week and addressed to Prime Minister David Cameron. It is obvious that Lord Young stands for a “creative destruction” and is actually stating an economic truth. But truth is not always welcomed by unions and especially by the Trades Union Congress.
In his testimony on Capitol Hill, the economist Russel Roberts is exposing the reasons why the The American Recovery and Reinvestment Act of 2009 (ARRA) has not the anticipated by government effect on jobs creation. He is pointing out that given the lack of success so far and the role uncertainty plays in the decision-making of entrepreneurs, investors and consumers, doing less might, paradoxically, be more successful than doing more, especially if the “more” that is done works in the wrong direction.