I do not agree–many business owners have stated the same thing during the last 12 months. When a company has trouble predicting what is coming, they will conserve.
Yes, I agree with you, if your point is that uncertainty fosters conservation of resources. I am not so sure that Romney provided any more certainty of anything.
I rather suspect that businesses will do what they have always done, regardless of who is in office. If things look like they are growing, then they will expand. If not, then they will contract, all in anticipation of what they predict.
A lot of the rhetoric from businesses supporting Romney was scare tactics. They wanted those tax cuts he promised, regardless of what impact it might have on our deficits. I think tax cuts are a good thing too. But we need a balanced approach.
I think that Romney might be in office now, if he had just changed his platform to say that he would cut spending, and then cut taxes. But that no taxes would be cut, until the spending measures were already in place. He did say that he would not cut any taxes without cutting spending, but we have heard that promise before. The critical pieces is to cut spending first, then revise the tax code to match what we can afford. Not to cut taxes and then try your best, but fail, to cut spending.
After going through it twice… tax cuts with promises of spending cuts which never happen, which then result in ever larger deficits, while portfolios swell… people were skeptical This opened the door for Obama to say… Oh, let’s just make the rich pay for everything. That wont’ work either to solve the problem, but at least it won’t increase the deficit as much as cutting taxes while increasing spending would.
