The Fix for the Economy
Business abhors uncertainty. Right now, it doesn’t know what to expect from Obama’s programs. It finds them unsettling and creating more questions than answers.
Businesses are saying they cannot assess the full impact the health care bill will have on their business models. Even the health care insurance companies are struggling to determine its impact.
Then there is the upcoming Cap and Trade fiasco waiting in the wings. This creates even more uncertainty about how it will impact their profit margin. All they know is that it will be negative. Whatever the costs, they will be passed to their customers. That means we will have less disposable income and means another negative impact upon the economy.
With so much uncertainty, business is waiting for these bills to become reality (better yet, fiction) while they are cut costs in anticipation.
On the senate docket is the Waxman-Markey climate and energy bill—aka the American Clean Energy and Security Act, ACES, H.R. 2454. That’s going to hit business structures, new homes, existing homes and transportation. It’s just another source of uncertainty about costs and what it means to business and another source of negative impact upon the economy.
Consumers are pulling back, saving their money, paying off bills but not spending it on the economy at normal rates. This creates more problems for businesses trying to weather the storm. It causes them to batten down the hatches even tighter. It’s no wonder employment rates are at historic levels.
It appears the problem affecting the economy is Obama himself. His brand of change creates fear, uncertainty and doubt.
Fixing the economy would then appear to be simple. Since he won’t resign, Obama should sit down and shut up.
If Obama were to do anything at this time, it would be to call for a press conference to announce he will not sign this version of the health care bill, that he will not sign the American Clean Energy and Security Act and that he will not sign the Cap and Trade bill. In addition, he should announce he will cut taxes for both business and individuals and will support legislation to force the banks to begin loaning to business and consumers.