Regime Uncertainty Evidence du Jour

By  •  Monday September 13, 2010 5:44 PM PDT  •  3 Comments

It’s unfortunately getting easier and easier to find confirmation that “regime uncertainty” is the biggest drag on the U.S. economy’s chances of recovery. This, from a front-page story in today’s Wall Street Journal:

The U.S. has ample resources to restimulate the global recovery. U.S. companies are sitting on some $1.8 trillion in cash—the highest level, as a share of their total assets, since 1963. If and when uncertainties over income taxes, health care and government policy clear up, companies could grow confident enough to deploy that cash to hire workers and invest in new projects.

The prescription is clear: Congress and the Obama administration need to give up their anti-business (and consumer) activities and let us all resume productive lives.

Tags: American History, Bailouts, Budget and Tax Policy, Business, Economics, Government subsidies, Healthcare, Taxation, Unemployment

3 Comment(s)

  1. The extent to which the state abandons policies of economic regulation is the extent to which it abandons its pretense for theft and redistribution. A state that didn’t interfere at all in the economy would be a naked mafia doling out spoils to interest groups. Considering 70 percent of Americans already agrees that the federal government is a special interest group, congress can’t really afford to remove its fig leaf.

    tinyurl.com/y99q44g

    The Ghost of James Caan | Sep 14, 2010 | Reply

  2. The prescription is clear: Congress and the Obama administration need to give up their anti-business (and consumer) activities and let us all resume productive lives.

    Assuming that is their goal is strong economic growth. Getting re-elected is their goal, and if they create a stable environment that is conducive to economic growth that might take too long given the election cycle so their thinking is, “At the very least we have to do something so that it looks like we are doing something....even if it is wrong.”

    Steve Verdon | Sep 14, 2010 | Reply

  3. ” The U.S. has ample resources to restimulate the global recovery. U.S. companies are sitting on some $1.8 trillion in cash ” ....but how much debt are they sitting on? Another crap statistic from corporate news.

    daddysteve | Sep 16, 2010 | Reply

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