Yesterday, I was interviewed by Fox Business News host Neil Cavuto to discuss what appears to be a correlation between gridlock in Washington D.C. and a positive effect on the market and the economy. Neil kicked off the segment, Washington gridlock good for U.S. stocks, economy, by citing previous pundit and media quotes about the lack of productivity in the 113th Congress.
The reality is this: despite the concern for an alleged “lack of progress” in our nation’s Capitol, we’re seeing GDP, job and stock market growth. I told Neil that when government does nothing, that’s generally better than when the government does something. The last three Congresses exhibit that. This Administration has experienced a number of significant challenges, but the midterm elections created certainty for the business community. In turn, business is driving growth, oil prices are down and consumer spending is up.
Halfway thru the segment, Neil shared with me and his viewers a graph that shows how Congressional bills and the DOW stack up against each other. The graph makes a very convincing case for less government interference.
Businesses do better when government isn’t interfering with them. Here’s to less government in 2015.
Happy New Year to all.