We at ITR have been saying how critical compromise on important issues in Washington is, and now, it looks like it might actually happen.
Something important is happening in post-election Washington. Republicans and Democrats, as presented by Messrs. Boehner and Reid, have made conciliatory statements and have indicated willingness to compromise on important issues like the fiscal cliff and a revamping of the tax code. Mr. Boehner in particular has stated that it is time for the President to lead – you are correct, Mr. Boehner. Our readers know that we have been saying how critical it is for Washington to meet in the aisle and get things done. It looks like that might actually happen.This will help keep the 2014 downturn mild.
Mr. Boehner also spoke last week on demographics. He stated what we at ITR have been saying for years now; 10,000 people a day are retiring. It is encouraging to know that Washington understands the math.
All of this should help uncertainty dissipate and business to bounce back later this year and in early 2013, as we have been projecting.