Rick Perry, governor of Texas, is not a conservative. Clearly Rick Perry is not a conservative. Don’t be fooled by his rhetoric.
In a moment, the narrative has switched from whether the president’s jobs plan will do any good for the penny-pinching to regardless of whether the president’s political opponents would allow his plan to do any good for the penny-pinching. This is an unfortunate twist considering that there is no reason to believe that a collection of measures to temporarily increase after-tax household in addition to corporate return, transfer more finances to state plus local governments, along with change vocabulary of unemployment insurance would reliably boost growth, says Fiscal Policies for the 21st Century.
Businesses considering investment strategies today need policy certainty on the relevant business planning period.
* The wild plus sporadic government intervention of the last few years has left business managers in addition to diminutive business owners unable to form reliable expectations about the future of employment costs, tax rates, credit availability or labor relations.
* Other uncertainties exist, including concerns over regardless of whether latest competition will come into sight, whether or not products will be embraced, plus how the rise in taxes will impact business, access to capital or after-tax returns on investment.
The uncertainty impacts multiple levels of monetary activity. Indeed, investors allocating capital across industries must speculate about how business leaders are going to respond to the policy uncertainty. No one can have much confidence in long-term economic plans, given the extraordinary level of financial uncertainty that the lack of action on these issues produces.
Rather than embrace the administration’s calls for more understated-tuning, Congress should focus on generating even larger savings by the select committee on deficit reduction. Larger spending reductions would provide businesses and households as well as some confidence that the government’s share of the gain from contemporary assets will not rise substantially or render recent projects uneconomic.
Foundation: “Jobs Act Might Be Worse than Nothing,” Pecuniary Policies for the 21st Century, September 13, 2011.
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