Sunday, September 4, 2011
Are Obama's Policies Responsible for the Slow Economy?
This article explains why fear of government regulation is not the reason why businesses are not creating jobs. The short answer is that the degree of government regulation is pretty much the same as what was before the Obama presidency. This article does not go into the next set of reasons used by conservatives to explain the failure of the economy to grow but they are false as well. Corporate profits are at a 60 year high and corporate tax payments are at a historical low. Can fear of taxation really explain why businesses are not investing? When we ask business leaders to tell us why they are not investing, the most common response is that consumers are not buying their products. They have excess capacity, and they see no need to expand as long as consumers are not beating the doors down to buy their products. Besides, there are good opportunities elsewhere where consumers are buying their products.
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