Give Me Back My Nest Egg

Government spending or tax cuts? As the clock ticks down until the election and the possibility of a lame duck session looms, a number of secondary economic stimulus proposals have already been raised (for the latest see Reuter's roundup here).

If policymakers really want to jump start things again, they need a package that will stimulate the economy, but more importantly stimulate confidence among investors in a free market that has failed them. Middle class Americans remain in shell shock over the dramatic plunge of their portfolios and the trillions they have lost. Before they wade back into the markets again, they need some reassurance of rebuilding their nest egg.

The devil of course is in the details, and in the coming months the ACCF will be looking to various policy options to help Americans get their nest egg back.

If the free market is to prevail, we need to inject confident invesmtents and people need incentives to remain for the long haul.