Are Politicians Kicking The Can On Hard Economic Decisions, Or Are They Out Of Options?

Are Politicians Kicking The Can On Hard Economic Decisions, Or Are They Out Of Options?

Nouriel Roubini, professor at the NYU’s Stern School of Business, and Chairman of Roubini Global Economics, in the Project Syndicate article “Fiddling at the Fire,” describes the precarious, and volatile state the economic and geopolitical world state is in, and challenges today’s leadership in the wake of the deepening global crisis, accusing them of “kicking the can,” avoiding hard decisions and action: Politicians Kick The Can On Hard Economic Decisions When Approaching A Brick Wall In The Economy Ineffective governments with weak leadership are at the root of the problem. In democracies, repeated elections lead to short-term policy choices. In autocracies like China and Russia, leaders resist the radical reforms that would reduce the power of entrenched lobbies and interests, thereby fueling social unrest as resentment against corruption and rent-seeking boils over into protest. But, as everyone kicks the can down the road, the can is getting heavier and, in the major emerging markets and advanced economies alike, is approaching a brick wall. Policymakers can either crash into that wall, or they can show the leadership and vision needed to dismantle it safely…” Is The Reason For Politicians Kicking The Can On Hard Economic Decisions Weak Leadership Or Something Else? Indeed, politicians have their own calculations, they think about their personal legacies, the next elections, what the party line is, what the powerful lobby groups, sponsors want, but in general they are not “evil people” intentionally wanting to destroy the world or their own countries. The Reason For Politicians Kicking The Can On Hard Economic Decisions Is Incomplete Knowledge About The World’s Current Situation The politicians seem weak, they “kick...