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Regulatory uncertainty killing American business, investment

By: James Richardson (Diary)  |  November 17th, 2010 at 03:18 PM  | 

RESIZE: AAA

The same non-profit group who wasted no time in lobbying new members of Congress to slash federal spending — by blanketing Ronald Reagan Washington International Airport with print ads in time for this week’s freshman orientation session — unveiled today a quirky new web spot addressing the nation’s “uncertain” economic environment.

The video, which features a bullish “boss lady” who opens beer bottles with her teeth, “is a joke,” but “its message is not,” a release by the group, Bankrupting America, reads. “Washington’s rhetoric and policies have been creating a damaging environment of uncertainty for businesses.”

Indeed, ambiguity over business’ new regulatory burdens — from the president’s overhaul of the health care sector, financial regulatory reform and the near-certain expiration of the Bush-era tax cuts — have upended the private sector, concerned that expansions and the costly investments associated with it might break the bank.

A recent report by the Heritage Foundation revealed that if the White House blocks a deal to extend all the Bush era tax cuts — including those governing rates on capital gains, dividends and estate taxes, which are scheduled to expire on December 31 — the economy would produce 238,000 fewer jobs in 2011. For the next decade, the lapse would markedly stall job creation, producing on average 693,000 fewer jobs annually.

Even as businesses have seen marginal rebounds in profits, like the one featured in the new advertisement, decision makers are unable — many unwilling, for good reason — to reinvest as legislators and the Administration use business as their whipping boy.

“When business lack clarity, they can’t plan ahead — choking expansion, investment and job creation,” the ad’s funders warn.

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  • izoneguy

    Proposed national sales tax known as a Value Added Tax (VAT) would really KILL the economy

    http://www.thefiscaltimes.com/Issues/Budget-Impact/2010/11/17/Fasten-Your-Seat-Belts-an-Even-Tougher-Deficit-Plan.aspx

    These people proposing all these taxes & regulations are idiots….

    Here is what the Republican platform should be for the next two years:

    The only way for a certain economic recovery is to get rid of the democrats and their fleckless leader – Barack Obama.

    We will repeal ObamaCare – Lock, Stock and Barrel.
    We will make the Bush tax rates permanent.
    We will slash needless spending.
    We will slash 25% of the government workforce.
    We will make government pay & benefits more in line with the private sector.
    We will change the laws regarding unionization of government employees.
    We will develop our own resources.

    This is just the start…..

    • tgirmus23

      “The only way for a certain economic recovery is to get rid of the democrats and their fleckless leader”

      Why put the blame on democrats when the Bush administration got us in the terrible economic position.

      Give Obama and his policies some time.

      • ceili_dancer

        I hope you forgot your end snark tags, if not, yuo may not be in the right neighborhood.
        We need to get rid of all of Obama’s fiats, executive orders, Czars, legislative agenda, etc. Business won’t come back until they have an idea where the economy is going. With most businesses sitting on 10 trillion in cash, barring massive inflation, thank you QE2, they think they can wait it out as the storm passes by.
        Via con Dios, you’ll need it.

        • ceili_dancer

          Looking at your 2 days on the website I see a G’bye in 3,2, 1…

        • tgirmus23

          All I am saying is that is unfair to place the entire blame Obama. He was elected at a time when the economy was in shambles. To expect him to clean up the mess in two years is rediculous.

          Before we decalre his presedency a dissapointment, let him atleasat finish his term.

          • ceili_dancer

            The oceans were going to recede and the planet was going to heal itself. I thought just with the election of the Annointed One(sorry I don’t know how to do the TM symbol) that all these things were going to happen.

            As an aside, didn’t the economic downturn occur with the Democrats assuming control opf the house and senate? I think it would be those policies that exacerbated the correction into the Charlie Foxtrot that we have as an economy. His policies are just a contrinuation of the same, although with his heavy hand, and boot to the throat, on the business climate really just pushes something over the brink.

            The world is crying out for leadership and unfortunately you can’t pull that out of thin air. The only experience he has is voting present and not making a decision. He also hates this country and its role as the world leader(did I say that with my outside voice>?) I don’t know if it’s because that would cause more work for him and get in the way of all of the vacations and Date Nights or what. I think this video nailed it dead-on center with why there is no recovery and won’t be one until we get his policies reversed.

          • tgirmus23

            Well said. But do you think that would be the best thing for this country? After all the time and energy that Obama has put into implementing these policies, do you think our country would be better served if we waited out these policies for a few more years?

            If nothing has changed by then, then we can reconsider our policies.

            I condiser myself as a political novice, and I would appreciate hearing a superior opinion to mine. Why exactly do you think we should change our policies now?

          • powertothepeople

            till I get tired kicking you in the nuts to see if it causes them to be crushed, the rest of the same world is going to stop the kicking right away even before the first kick lands if at all possible.

            In the real world, we had to take a few nut shots from Obama because we gave up control of the Congress and the Office of the President, but no way we are going to sit back for more years as you suggest so that we end up with smashed nuts.

            His policies are dangerous and will destroy this country if not stopped. Even the libtards know that unless that are stupid or dishonest. He has spent more money in 2 years than Bush spent in 8 years of his office including the 6 plus years of war. He has socialized medicine which has cost that can not be sustained by this country. If we do not shut it down, then when the plan goes into full affect, we will go bankrupt.

            The list could go on and on and on, so stop playing stupid. Either you are a troll trying to start trouble and doing so poorly, or you are really that stupid. This is not a pro Obama site nor are we idiots. We know, unlike Obama and the left, you can not spend your way out of debt and an economical disaster. We know that his massive raising of our debt, more so than any other president in history, will kill the economical lives of our kids and their kids. We know that his attempt to socialize all this is America is dangerous and against our constitution,

            We understand that Obama and his policies are not only Un-American but also dangerous. We know that have to be stopped as soon as possible and so did the country, hence the last election. We know that waiting to see how much more Obama can damage us is not the smart thing to do.

            Now, if you want to be an Obama lap dog and express your undying love for him, this is not the site. You missed the big left turn prior to the door of this site.

          • tgirmus23

            From what I recall, the last time we were in such a dire economic situation, we got out of it by creating jobs for Americans. This is exactly what Obama is trying to accomplish.

            These executive orders used by Obama, that you say are so harmful to America, are similar to the methods used by FDR to get us out of the Great Depression.

          • johnCV

            We did not get out of the Depression until WWII ended. Doing the same thing will get the same results.

            http://alhambrainvestments.com/blog/2008/10/20/fdr-policies-extended-the-depression/

          • powertothepeople

            and I would suggest you stop spewing pro Obama nonsense if you want to remain here. Personally, I would not ban you idiots as you are too much fun, but Moe and Neil feel otherwise.

            Now, moving on to the topic. Your reply was pure nonsense. As the other poster stated, the policies of FDR were failures. His New Deal was a dismal failure and most people know it. We got out of the depression long after we should have and we got out of it in spite of FDR, not because.

            I will say it one more time just for you and even add an example in for you. We can not spend our way out of an economical crash, period. Business will not thrive, grow, and add jobs in an adverse environment or when they are being taxed to death, period. Raising the debt ceiling will never be a fix for a recession or a depression, period.

            If my family is 25,000 in debt with payments of 2000 a month and an income of 2100, we are in trouble. To take out additional loans to pay off the old ones is not a fix, nor is going out and spending more money. All that does is create more debt and more trouble. Taking out a loan may bring some “free Cash” into the home, but now instead of having 25000 in debt with a 2000 a month payment, we get a very short break then move on to owing 30000 with a 2200 dollar payment. Now we are worse off than before and now we are making 100 less than what we need. so now to pay this, we have to establish new credit, which piles on more debt and eventually it will crash. Obama has made some god awful decisions that we will be paying for 30 years from now and maybe longer. He has raised our debt like no other president before him, spent more than any president in history, has created an environment where business does not feel secure so that they have stopped hiring and have even continued laying off, and has laid an enormous burden on the backs of our kids via socialized medicine which we will never be able to afford as it is now much less as it expands. And yet our economy is worse off than when he took it over, unemployment is as high and in many states, higher, our debt is out of control, taxes are higher, etc.

            There is not one good thing Obama has done. He is a piss poor president and his policies are foolish and dangerous. Carter lost his title to worst president ever the day Obama was elected. So please stop with the dumb stuff and quit trying to push your pro Obama agenda in here, we are not idiots nor are we gullible!

          • izoneguy

            The economy was humming along just fine until the dems took control in 2006. Bush bears some of the blame. But remember – the housing crash is what tanked the economy. Bush tried 18 times to rein in Freddie Mac & Fannie Mae. And our old pal Barney said nothing was wrong and then did a 180 and wanted to abolish Freddie Mac & Fannie Mae when he had a real challenge to his seat.

            We will get through the rest of this year and then the Republicans will start kicking ass. They have to. A real intervention is needed. The American political class has been on a constant bender for over 20 years. Like any alcoholic or drug addict – they need to stop before America is dead. And if gangrene sets in because of California, New York or Illinois – well we know what happens to limbs when gangrene sets in.

            So, no – we are not going to relax and just take it.
            The oush to unseat Obama begins in earnest.

          • tgirmus23

            I posed as an extreme liberal to get a response from this website for a school project.

            Even if I got absolutely bashed, thank you for your responses.

            I would like to point out that I am a liberal, but I agree with most of you in that I do not like where this economy is headed.

          • Common_Cents

            cue jeopardy music.

  • Old_Crow

    These are 3-6 year investments, and reversing them will take much more than a Republican House and Senate. I talk to a lot of folks as I fly over 100,000 miles in business class between the US, Europe. Over regulation is the prime mover followed closely by the anti-business attitude of the current administration.

    On my last flight I sat next to a Dubai finance guy who was providing funding for such operations (for stock other type compensation). He was investing tens of millions of dollars just on this trip. His list of companies was several pages long, and no he wouldn’t give me a copy.

    Business leaders are not stupid, and as a group, don’t trust either party right now. They will play waits-and-see. We will be feeling the effects of this over regulation for at least a decade.

    • izoneguy

      Because I have been hearing the same thing from several clients.

      “It was the worst of times and it was the worst of times”

      • texasgalt

        of our total discontent.

        • izoneguy

          Things fall apart; the center cannot hold

    • Common_Cents

      soveriegn society and escape artist are surely doing big business selling seminars, newsletters, consulting for people wanting to protect their assets, tax minimization, and consider a move off shore.

      Why not make all the loop holes available to the John Kerry elites available to the common guy?

  • Adjoran

    They envision a “regulatory strategy” over the next two years to get what they can’t get through Congress – and most of it they couldn’t get through the Democratic 111th.

    It’s going to be a huge battle, fought every day in dozens of agencies.

    And yes, the uncertainties, combined with the known hostility of this Administration towards business specifically and capitalism in general, will continue to stall recovery.

    • izoneguy

      Cut off the paychecks to thousands of government workers and what do you think they will do? No, you are not fired – but we are not paying you anymore. I don’t think pencil pushers would do to well up against our military. Wait until the new republican governers get seated. Many of them will do their best impressions of Chris Christie or Mitch Daniels.

      New Governor Trashes Union Rights of Indiana State Workers
      http://newstandardnews.net/content/index.cfm/items/1409

      This guy does not like what Mitch Daniels is doing but I do!!
      http://www.kokomoperspective.com/opinion/editorials/article_630a8c40-ed0b-11df-874a-001cc4c002e0.html

      The first prong involves the adoption of a right-to-work law.

      The second prong involves the decimation of public education.

      The third prong would cut unemployment benefits.