Friday, October 8, 2010

Is Fear Stopping the Economic Recovery?

Businesses have good reason to fear under the Obama administration. Obamacare is a huge bill nobody read that affects one sixth of the U.S. economy. Businesses are unsure what it will finally cost them, but they know it will be expensive. There is also concern about the Dodd-Frank bill Financial Reform bill. Nobody read this 2300 page monstrosity either. Businesses are finding the 1099 provision especially burdensome. Democrats may try to pass the EFCA (Card Check) during a lame duck session at the end of this year. That bill would increase business costs and ease unionization rules for workers. There is also fear and uncertainty in the business community about the cost and additional regulations if Cap-and-Trade ever passes. Add the possibility of a backdoor tax hike, by way of allowing the Bush tax cuts to expire, and there isn't really isn't any reason for businesses to expand and take risks. The Obama administration is the most anti-business administration in history. Can you blame businesses for hunkering down and hoarding their cash?

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