‘Foong on Finance’ with Keat Foong: Is the Tea Party Good for Commercial Real Estate?
- Sep 24, 2010
Jobs, jobs, jobs. Speaking to executives in the commercial real estate financing industry, I hear that the most important economic indicator for them is, without doubt, job growth. Job growth has to increase before the commercial real estate fundamentals can improve.
If Tea Party candidates sweep the upcoming elections in November, will that bring about better job growth prospects for the economy? There are two courses of action one would think a Tea Party politician would want to implement immediately and radically: (1.) cutting taxes and (2.) cutting spending.
Will cutting taxes and cutting government spending at a deep level bring about better job creation?
As it stands, those with capital are already sitting on a lot of cash and there has not been any extraordinary job creation. Also, if cutting spending would bring about job creation, the federal stimulus could not be a good thing. Yet economists would likely bemoan the “last extension of unemployment benefits” and “last round of federal aid to the states” that have already occurred this year.