Lawrence Whitman, formerly the director of the Thomas A. Roe Institute for Economic Policy Studies at Heritage, appeared on MSNBC's "Nachman" Tuesday evening, to discuss the President's economic summit.
Confidence on the part of consumers, investors and business owners is an integral part to the economy. And the greater the confidence people have across the spectrum, the greater the chance for economic growth going forward. That's why it's important for the President to hear the views of people, ordinary people as well as CEO's and academics, and for the President to get out in front and lead on this issue, and inspire confidence in people.
So this "feel good" stuff, no matter how ephemeral it is, can be meaningful in the economic reality, correct?
It's not just that it's ephemeral, it's what some economists have called "animal spirit." It's what people perceive about the future as well as the present that effects their behavior now.