Posted on 07/06/2010 10:19:35 AM PDT by Qbert
There is one word being mentioned by business leaders and economists more frequently when the conversation turns to why jobs are not returning more quickly to the U.S. economy: uncertainty.
By reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses, said Verizon CEO Ivan Seidenberg at a speech in Washington in late June.
Federal Reserve Governor Kevin Warsh said in a recent speech in Atlanta: Owing to a less-than-assured economic outlook and broad uncertainty about public policy, employers appear quite reluctant to add to payrolls.
Roberton Williams, senior fellow at the Tax Policy Center, said in an interview, The whole tax situation is very much in flux, very uncertain. It makes it hard to plan.
[Snip].
Seidenbergs comments last month were a significant political moment. The Verizon CEO has been one of President Obamas strongest allies in the business community, and as president of the 170-member Business Roundtable, he had tried to cooperate with the Obama administration on its trademark agenda items health care, financial reform and energy legislation.
But, Seidenberg said he was troubled by Obamas agenda, so much so that he had reached a point where the negative effects of these policies are simply too significant to ignore.
(Excerpt) Read more at dailycaller.com ...
So, basically, Seidenberg is not very bright, because almost everyone at this site saw this coming. It was not very difficult to predict.
“But, Seidenberg said he was troubled by Obamas agenda, so much so that he had reached a point where the negative effects of these policies are simply too significant to ignore.”
Sounds like he’s more concerned by certainties than any uncertainties.
There is no uncertainty. Poor title. Obama is doing exactly what he intends. Destroy America.
Has anyone done an analysis on hiring in businesses which require a long term investment and plan versus those that are relatively fly by night? For example, to build a new factory I have to have some expectation of what taxes and regulations will be ten or twenty years from now, while to rent a cart at a mall I might only need to plan a month in advance if I don’t need a year long lease on the cart. Are the “no planning” jobs coming back at a greater rate than the long-term jobs?
“...Are the no planning jobs coming back at a greater rate than the long-term jobs?”
I’m not sure- I haven’t seen any. My understanding is that most of the private sector hiring has simply been temp jobs.
The problem for the fly-by-night companies still remains that it is difficult to get a loan because the banks aren’t lending to them. And small businesses of course will be equally hurt by uncertainty with regard to taxes and future Obamacare regulations, etc., even if they aren’t building factories and dealing with physical assets.
This is not the reason why businesses are not hiring. It’s about expected profit potential or lack thereof
From what I recall from over 30 years ago or so, for the Thanksgiving-Christmas season, those carts at the mall could cost nearly $10k upfront in space rental/electricity/drayage (or union payoffs)/insurance/fees/commissions. That was before inventory or labor costs.
With lowered traffic and restrained spending, who would consider that sort of investment. I wonder if it is less expensive now?
i’m done. after the call i had this afternoon, DoJ/AG office, i’m looking into moving it all out of the US immediately. screw it.
and if you guys haven’t figured out what’s about to happen... once 0bama grants amnesty to the 20m illegals, they will be told to come down and pick up their new gov’t issued ids. when they do... there will be a voter registration desk right next to it... with stacks of absentee ballots just waiting to be filled out.
40+ years of socialist/progressive control started on jan 21, 2009
good luck (don’t worry... i’ll be back once the fun starts)
its really very simple. Do the math. If the productive can’t be assured of producing, unmolested, they will take their toys and go home.
From the productive’s perspective, government is there to be sure they can grow and thrive, providing employment and opportunity to the community.
From the Parasitic Class’ standpoint, government is there to rape the productive for their own ends.
Its really the electorate’s choice.
“... once 0bama grants amnesty to the 20m illegals, they will be told to come down and pick up their new govt issued ids. when they do... there will be a voter registration desk right next to it... with stacks of absentee ballots just waiting to be filled out.”
Not too mention the New Black Panthers standing outside clubbing any “whiteys” trying to observe the proceedings.
“This is not the reason why businesses are not hiring. Its about expected profit potential or lack thereof”
You’re right in the larger scheme of things, but I think there’s definitely a merit to using the “uncertainty” angle as a way of forcing the Dems’ hand...
I went Galt when I saw the writing on the wall, back when the fear of Obama’s socialism was partially based on uncertainty. At this point, there is no uncertainty at all. Obama doesn’t believe in private property. He genuinely thinks it is his job to spread our wealth around. While there is a great deal of evil in his heart, I am thankful that there is a substantial level of stupidity too. Obama is completely clueless on the degree to which we have a say in whether he steals what we produce and in whether we produce at all beyond the threshold where the portion of the wealth we are permitted to retain compensates us for our time and the risk of producing that wealth. The next 2 1/2 years could be very ugly.
So that jack-ass finally figured out what the rest of us have known for decades of government interference destroying our economy, free enterprise, and private sector jobs.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.