Our Views: A new high for the Dow

With all the caveats about the Dow Jones index, it’s still one of those numbers that resonates in the national economy when it reaches a new record.

Sure, it’s not as broad-based as other indexes and is almost a holdover from the days when 30 or so industrial stocks were the national economic thermometer. But its new high nevertheless represents another milestone in economic recovery.

Its recent high note is a reflection of generally positive reports about business activity across the country, compiled by the Federal Reserve into its “beige book” on what regional Fed banks are seeing in their areas.

Reading the beige book reports also should be a reminder, in these pages as elsewhere in the news, that the influence of Washington or Baton Rouge can be overstated: The real economy is influenced by political decisions, to a point, but mostly by the underlying strength of capitalism.

Yes, the economy did respond to higher taxes, when a payroll tax cut expired in January, and there is probably going to be some impact from a negative decision in Washington, to allow the “sequester” of some federal spending to take place.

Yet these are barnacles on an immensely larger vessel, fueled by winds that are far more powerful than the oarsmen in the U.S. Capitol or state capitols — particularly when the so-called statesmen are using the oars to beat each other over the head, instead of rowing.

So with all the caveats about the Dow, and a necessary caution where government intervention is concerned, let’s remember that free enterprise and free people remain the most important economic factors.

Comments

1) Comment by DMJ - 18/03/2013

Ok, job creators. You've got your money. Where are the jobs?

2) Comment by bourbon-soda - 18/03/2013

The question is, how much can you monkey with free enterprise and free people without killing the goose?

3) Comment by Being_Stupid - 18/03/2013

Buy high, sell low.

4) Comment by Whine & Cheese - 18/03/2013

And now we know: the low information voter reads the Advocate. The only reason the Dow is at an all time high is the endless printing of money by the current administration. When you compare the dollar to other currencies, you'll find the dollar to be at an all time low. In other words, if the Dow gets much higher, a gallon of milk is going to cost $6.00.

5) Comment by agagent - 18/03/2013

Fortunately, many governors rejected Obama’s lead and chartered their own course of responsible government spending and lower taxes. Louisiana’s unemployment rate is much lower than the national average, and the state government must balance its budget and cannot print money like in Washington. We are in an energy boom in spite of Obama’s war on fossil fuels. Instead of the 5 million new green energy jobs Obama promised we had corruption, waste of taxpayer money, and the bankruptcies of many green energy businesses which received federal stimulus funds.

6) Comment by agagent - 18/03/2013

It is true that capitalism could have given us a real recovery, but we will never know because of the drag Obama’s policies on the national economy. As for the squabbling, it is no more than a little noise in the back of the ship. Obama continues to steered the ship of state into uncharted waters of record national debt, increased government control of the economy and the loss of personal liberties, and record dependence on government.