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New Capital Formation
You are ignoring the impact of government policies on capital formation. High taxes or interest rates or constrictions on the money supply restrict the availability of capital. Without capital businesses cannot expand or create new ventures.

I'd agree with BP that for the most part the economy is out of the control of politicians. I'd just add the condition that they don't know what impact their policies will have and so cannot be said to be in control.
New the availability of capital has nothing to do with govt
while the fed controls the interest rate it only controls the central rate. Capital with 50% interest can be raised if the venture needs to. They only control consumer spending and rates not business. Private money is always available for the right projects.
thanx,
bill
Our bureaucracy and our laws have turned the world into a clean, safe work camp. We are raising a nation of slaves.
Chuck Palahniuk
New There is a small effect...
...when you take a combination of tax policy and interest rates...you can >marginally< affect capital formation....usually in timing only...by delaying certain spending...

However, that effect is secondary..as most major capital formation is a function of the underlying competitive conditions in the market...

For example...IF there is a demand for 1 million pounds of di-methyl doorknobs and production capacity of 700000 pounds....someone, somewhere will fill that capacity void...OR...if a technology advancement is made that allows a process to improve into a low-cost position...that capital formation will occur REGARDLESS of government policy...assuming...of course...that the policy is within established norms. (30-50% tax rates...5-15% interest)
You were born...and so you're free...so Happy Birthday! Laurie Anderson

[link|mailto:bepatient@aol.com|BePatient]
     Question for all you Repo apologists out there... - (jb4) - (59)
         As opposed to... - (Another Scott) - (5)
             How's that? - (mmoffitt) - (4)
                 A couple of examples. - (Another Scott) - (3)
                     Wow, are those nits ever small - (drewk)
                     I am unmoved. - (mmoffitt) - (1)
                         Jimmy sure was a different President. - (inthane-chan)
         He'll take the tobacco defense - (GBert)
         Odds that we run a deficit b4 the Resident is out of office? -NT - (mmoffitt) - (1)
             I'm not taking that bet (regardless of the odds)! -NT - (jb4)
         Out of curiosity, what are you talking about? Budgets? - (wharris2)
         Question for all you Repo doubters - (rsf) - (10)
             As with most other politicians, telling when Bush is lying- - (DonRichards) - (2)
                 In this case, however - (wharris2) - (1)
                     I think you have it right - (DonRichards)
             Try to follow along here, now... - (jb4) - (6)
                 Re: Try to follow along here, now... - (wharris2)
                 Re: Try to follow along here, now... - (bepatient) - (4)
                     Well...if it's their programs and their budget... - (Simon_Jester) - (2)
                         I'm sure there's some... - (bepatient) - (1)
                             I want every penny of that surplus - (wharris2)
                     IT'S BAAAAAAAAAAAAAACCCCCCCCCCCCCK! - (mmoffitt)
         Link to Sources - (Simon_Jester) - (1)
             surplus, what surplus? - (boxley)
         Hee Hee - (deSitter) - (35)
             Ho Ho - (rsf) - (34)
                 Jabbering is no use - (deSitter) - (30)
                     About that '92-2000 period... - (inthane-chan) - (1)
                         Denonthinker - (wharris2)
                     Jabbering is no use - agreed - (rsf)
                     Why don't you tie those dates... - (bepatient) - (23)
                         I musta been sleeping for 8 years, but... - (jb4) - (22)
                             slap slap - (wharris2)
                             Huh? - (bepatient) - (20)
                                 hoorah! someone who understands basic economics! - (boxley) - (5)
                                     Capital Formation - (Decco Dave) - (2)
                                         the availability of capital has nothing to do with govt - (boxley)
                                         There is a small effect... - (bepatient)
                                     So lemme get this striaght.. - (jb4) - (1)
                                         according to me yeah, propaganda value only -NT - (boxley)
                                 Why that's.. that's - unDemocrat AND unRepublican!! of you \ufffd -NT - (Ashton) - (2)
                                     That may be the nicest thing said to me in this forum:) -NT - (bepatient) - (1)
                                         I had at times suspected that, behind that calm facade - (Ashton)
                                 Policies can have some impact - (wharris2) - (10)
                                     LOL! - (Simon_Jester) - (9)
                                         Which one? -NT - (bepatient) - (8)
                                             This one... - (Simon_Jester) - (7)
                                                 Ah... - (bepatient) - (6)
                                                     Muhahaha - (Simon_Jester) - (5)
                                                         Damn...I thought you could read... - (bepatient) - (4)
                                                             Oh I know, you left yourself weasel room - (Simon_Jester) - (3)
                                                                 Well...lets see... - (bepatient) - (2)
                                                                     Well, I think you're still looking at the trees too much... - (Simon_Jester) - (1)
                                                                         Presidential politics... - (bepatient)
                     Clearly not so. - (Another Scott) - (2)
                         Nancy - (rsf)
                         Bizarre :) - (deSitter)
                 Re: Ho Ho - (kelzer) - (2)
                     Can we get an AMEN! -NT - (bepatient)
                     But can G. be blamed for the massive gullibility that Was - (Ashton)

At times I feel uncomfortably sure that I was a sysadmin by trade.
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