Today an industry magazine, Investment News Daily, published an article representing a survey of advisors. They were asked which candidate they believe is most qualified to lead the U.S. toward recovery and growth. Their answers were interesting and revolved around removing President Obama, with a call for less regulation and lower taxes.
Regardless of political leanings, laws, regulations, taxes, and other economic influences, all economic movement comes from supply and demand. If our economy is based on consumption (most economists would argue this point to the tune of 66% to 75% causation), then demand will be created when there is a sense of real security in housing values and job safety.
Companies will produce goods and services once they see a clear demand for them, not based on which parties president is in office or what regulation or tax law is or isn’t in effect. When this happens, jobs will be created in the U.S. It is no more complicated than that.
A wise teacher once told me that to get the right answer you must ask the correct question. The question is not one of public policy or who should be president, but how do we as a nation (and advisors) help create a sense of security for each and every one of us.
While I don’t have the answer to that question, I believe it is one that should be a major topic of discussion. My opinion is that lowering taxes on the wealthiest, and to not require a fiduciary standard to broker dealers and their Registered Reps, will do little to add to anyone’s sense of security (except to those that would profit from this public policy).