The editors of the Wall Street Journal write An Economy Built to Stall- With a third slowdown in three years, maybe the problem is the policies. 6/12/2012
Maybe Milton Friedman was right that “temporary, targeted” tax cuts don’t change the incentives to invest or hire because people aren’t stupid. Maybe each $1 of new federal spending doesn’t produce a “multiplier” of 1.5 times that in added output. Maybe the historic burst of regulation of the last three years has harmed business confidence and job creation. And maybe the uncertainty that comes from helter-skelter fiscal and monetary policy has dampened the animal spirits needed for a durable expansion.
3-1/2 years into this presidency and years after the recession is officially over I still do not know what my tax rates will be next year. Only a fool would make long term investments in such an environment. There is way too much money sitting on the sidelines that could be deployed to invest and create jobs, yet it remains idle, pending the thousands of rules waiting from the Dodd Frank bill and the Health Care Act. Even though Cap and Trade and the Card Check bill never came to light, just the fact that this administration sought them and continues to demonize investors, stills the willingness to take the risks that we seriously need them to take.