Last week brought more bad news to America’s continuing malaise. Unemployment numbers continue to free fall as this national headache reaches epidemic proportions. While Americans are fed a constant diet of promises and new government intervention to solve this crisis, the ongoing national tragedy continues unabated.
There are two mitigating factors stifling any real hope for employment gains. Both are produced in Washington, D.C. and can be boiled down to two simple words: Uncertainty and rhetoric.
First, consider the uncertainty. Within the present economic environment, businesses cannot plan for the future. That uncertainty begins with tax policy. This was greatly exacerbated when Majority Speaker Pelosi unexpectedly adjourned Congress so threatened members could hurry back to their districts to campaign.
As a result, income taxes, capital gains, dividends and a host of other expiring business incentives are all hostage to congressional fiat. Because of this arrogant use of power, it is feasible that none of these vital tax issues will be resolved in fiscal 2010.
The real possibility exists these problems will be sidestepped purposefully. Many Democrats shied away from firm decisions pertaining to any extension of the Bush tax cuts in an effort to hide their “tax and spend” agenda. Major tax increases on income, savings and investments will occur if no action is taken before January 1st.
Health care and environmental regulation also contribute to the uncertainty. Portions of Obamacare is being implemented. With these changes, insurance premiums are skyrocketing and employers altering coverage. These cost increases, vehemently dismissed during debate ofObamacare, are now reality.
The administration’s alacrity when it comes to interfering in private business is legendary. The White House may even redouble efforts to impose new requirements in the air, water and energy-producing sectors. This is more likely if Democrats lose their majority in Congress. They remain strangely mute, enraging the opposition who suspect this intransigence is designed to confuse voters.
Obama’s own rhetoric makes up the second part of job uncertainty and continued high unemployment.
The monotonous White House mantra of “us vs. them” is resonating within the private sector. Taking on the U.S. Chamber of Commerce over alleged use of foreign money for political contributions is only the most recent example. The persistent and never-ending campaign theme of anti-business finger-pointing is redundant.
In Obamaland, American corporations are the bogeyman.
American private enterprise is left with the obvious impression that the Obama White House is anti-business and pro-government regulation. This rhetoric might have a place during an election, but the president and his liberal allies make this daily policy.
The ongoing tone and language may be appropriate for a liberal community organizer, but is completely out of place for the leader of the free world. The incessant political diatribe promotes a negative business reaction if Obama truly hopes to instill confidence and increase job-producing investment.
The latest business projections out of corporate America clearly indicates companies are sitting on record amounts of cash. Instead of investing in the nation’s economy and new employment, trillions of dollars stay on the sidelines awaiting the voter’s final yea or nay to renewed hope in America.
It doesn’t take a PhD in economics to envision what that future will be if significant political change does not emerge this November 2nd.
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