E
Elizabeth502
Guest
Well, ishii (and thanks for your reply)…It has been my sense that businesses are waiting for a new election, then, because they already know what the current policies are. I just think that that was a little dishonest of them. When lobbying for tax cuts, the rationale they used was that they couldn’t create jobs without such cuts, and with that rationale was the plea for urgency, since at the time of the legislation, jobs desperately needed creating, yesterday. If they didn’t sincerely mean to create jobs during an Obama administration, then the cuts lacked urgency.I think a more likely answer is they’re unsure of what the policy will be in the future and they’re waiting. Businesses need stability, not one policy one year and a different policy the next, and so on. If they are going to make decisions that are long-term committments then they need to be reasonably sure of the govt. policies - tax rates, regulation, etc. (healthcare policy, eg.!) over the next few years. If they are unsure, they will be very conservative and won’t expand or open that factory, e.g. Seems pretty simple to me. Read Amity Schlaes’ The Forgotten Man in which she demonstrates how the private sector didn’t expand in the 30’s during the Great Depression partly due to apprehension about FDR’s unpredictable policies and endless tinkering. Schlaes has written for New Yorker and New Republic - just in case you’re afraid she’s just another right-wing blogger. If you were a business owner and you thought that Obama was about to drive us over the fiscal cliff would you expand your business?
amazon.com/The-Forgotten-Man-History-Depression/dp/0066211700
Ishii
(I’m not “afraid” of “right-wing bloggers,” by the way.