Mohammed El-Erian of PIMCO joined his voice to the chorus today by saying that "leaders should get their act together." Geez Mohammed. Haven't they done enough? They've imposed a welfare state, borrowed trillions of dollars that can't be paid, imposed regulations and laws that make business formation and expansion next to impossible, enacted labor laws that make it unattractive to expand or maintain employment. What more can they do, Mohammed?
At some point, folks like El-Erian need to recognize that employers make hiring decisions and that, absent a reason to hire anyone, they won't hire anyone. Employers have been give a host of good reasons not to hire anyone and they are acting accordingly, both in Europe and in the US. Hopefully, the "leaders will not get their act together."
Maybe, we should give all political leader 364 days of paid vacation annually. They can meet ceremoniously one day every four years. Then much less damage would be done and markets could function without their interference.
This idea that the world can be led by political hacks that have spent their formative years learning how to memorize a set of meaningless platitudes that can provide a path to an electoral victory is a joke. The world doesn't need political leaders "to get their act together." What they need is for the political leaders to get out of the way and let free markets work.
Only free markets can deliver economic growth. Western political leaders have done everything in their power to wage war on the free market. They win. The economy loses.
What in the world does El-Erian think they (political leaders) can do, if not more of the same?
El-Erian praised all the bailouts of the 2008-09 period, praised the stimulus package. He's been a consistent cheerleader for big government and high deficits. Now, I suppose he wants more of the same since it's worked so well so far.