The Pension Problem Jake Towne, the Champion of the Constitution libertarian
Topic: Economics
Introducing Uncertainty
Barack Obama, speaking to the Chamber of Commerce in Washington, D.C. introduced even more uncertainty into the future of American business. The question is why? by EJ Moosa
(libertarian)
Monday, February 7, 2011
Today Barack Obama spoke to the Chamber of Commerce. In a speech I am sure he meant to reassure the business leaders of America and instill a level of confidence to begin hiring, had to have done the opposite. Obama's words could probably not be more paralyzing to corporate America had he tried.
Obama spoke of simplifying the corporate tax code in order to be able to lower corporate tax rates. And in order to do so, many loopholes and credits will need to be eliminated.
The uncertainty for business leaders are which ones? What time frames? What business or organization wants to be in the middle of a project, only to find that the assumptions for that project have changed? Consequently, many projects will likely be placed on hold until the uncertainty is resolved.
Obama also introduced a great deal of uncertainty into the areas of research and development. In his State of the Union address, he also mentioned this concept of having the government fund research and development and they the promising discoveries then moving to the private sector.
Obama's rationale is that many of these ideas are money losing propositions. Obama feels he is doing corporate America a favor. Yet he is doing the American people the greatest harm possible. Why?
In the private sector, research which is not providing results is FORCED to end when the money runs out. If the government is providing the research, we know that the money NEVER runs out. We will be on the hook for worthless research for generations to come.
What do you think those in the area of research in corporations are thinking today? Will they soon be competing with the federal government in the hiring of the best and the brightest or researchers? Will they now be competing with the federal government on the very research itself?
Obama also talked about eliminating some of the needless regulations business must deal with. Then, told the audience that much of the regulation is needed. He offered no principles or guidelines as to tell what would be eliminated. The process is guaranteed to be arbitrary, and drawn out.
Finally, Obama could have clarified his position on the Health Care issue in light of two courts declaring it unconstitutional. He chose to defend the purported benefits while leaving business leaders in the dark as to whether they should continue implementing plans that may very well be found unconstitutional when the Supreme Court finally takes the case. And if it is found unconstitutional, the millions spend just to implement will be a total loss.
Businesses want as clear an environment to operate in as possible. There are many decisions that must be made by those running businesses based on what they know. Obama continues to introduce additional variables, paralyzing this very decision making process.
Had Obama had any real world business experience he might understand this. But because he doesn't, many of today's business leaders will do the very opposite that Obama had hoped for. They will delay expanding their businesses until the uncertainties introduced by Obama are clarified.
The confidence Obama had hoped to instill was not. Businesses were left were an even greater level of uncertainty.
Obama's very words will slow the recovery he must be hoping for.
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The views expressed
in this article are those of EJ Moosa only and
do not represent the views of Nolan Chart, LLC or its affiliates.
EJ Moosa is solely responsible for the contents
of this article and is not an employee or otherwise affiliated
with Nolan Chart, LLC in his/her role as a columnist.
