James Pethokoukis

Politics and policy from inside Washington

Small business to Washington: Stop confusing us

December 9, 2009

If you listen to the National Federal of Independent Business, the anemic recovery and weak consumer spending are its biggest concerns. But there is something else:

But the other major concern is the level of uncertainty being created by government, the usually source of uncertainty for the economy. The “turbulence” created when Congress is in session is often debilitating, this year being one of the worst. Themes including “tax more,” “tax the rich even more,” “VAT taxes,” higher energy costs due to Cap and Trade, mandates and taxes for health care, threats of “stimulus II,” incomprehensible deficits, and a huge pool of liquidity created by the Federal Reserve Bank that threatens price stability and higher interest rates. The list goes on and on. There is not much to look forward to here and good reason to “keep your powder dry.” Uncertainly is the enemy of the real economy as well as financial markets. …

But there are still many uncertainties ahead (most in Congress) that need to be resolved and plenty of “income redistribution” yet to come as we continue to clean up our financial system – all which creates major headwinds for the economy.

Comments

Government has always been – and always will be – the problem. I cringe when I hear people talk about the gov’mint. Hopefully all those voters who bought into Mr. Obama’s ‘change we can believe in’ will kick some Democratic butt next November, but I’m not holding my breath. Obama is a master of form over substance and there is apparently no lack of willing buyers.

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