When asked about the “single most important problem” facing their businesses, about one in four cited “poor sales,” according to the federation’s survey. Uncertainty over regulations is also mentioned frequently. About a third of businesses blame either “taxes” or “government requirements” for their current troubles, leading some economists to attribute the recent slide in overall business optimism to Washington’s protracted debates over tax policy, financial changes and health care.
Let's take an example. The debt ceiling debate -- which should be a non-starter -- is turning into an utter fiasco. The intractability of both parties -- the Republicans who refuse to raise taxes and the Democrats who refuse to change entitlements -- are yelling past each other in an effort to score political points. As they dawdle, Rome burns. Businesses looking at this have to wonder the following:
1.) Why do something positive if Washington might blow it up in the near future?
2.) Will Washington actually ever solve a real problem in the future?
Here are the answers to the above questions.
1.) Why indeed
2.) No.
And that is one of the central problems we face right now.
Let me add -- I blame both parties equally for this garbage.
9 comments:
It's a non-starter to held hostage to entitlement cuts (or any other policy initiative) by the debt ceiling. To treat this as anything other than a hostage threat is to invite the very thing you're decrying __every year__.
There are several perspective in the lobotomy palace.
Some people want to protect entitlements. Others want to protect defense welfare.
At the point that some people think that a default of some term will cause a depression, and others think that the depression is the better alternative to the consequences of indefinite debt expansion, it is hard to negotiate.
The debt ceiling is NOT the place to have a rational discussion concerning spending and revenue. The Republicans are clearly to blame if anything bad happens.
I would discount responses from small business owners who complain about taxes or government requirements as nothing but being ideologically driven. It's not like we're entering this new era of increased regulation and high tax rates. You also would not believe the number of small business owners who spend inordinate amounts of time figuring arcane ways to shave a relatively small amount off their tax bill. If they spent as much time with actually running their business, they'd be a heckava lot further ahead.
Bonddad, I can hardly believe you are saying that entitlements should be cut. People pay for Social Security and Medicare, the biggest "entitlements" up front. Veterans pensions are, too. Are you talking about robbing people of what they contributed? That leaves Medicaid, food stamps, and farm subsidies. At a time when people are desperate, it is morally repugnant to cut Medicaid and food stamps. That leaves farm subsidies. If you're trying to say that these should be cut, say so. But you should be aware that it's not just Democrats protecting farm subsidies.
Calling the parties equally culpable is a copout and a cheap shot. Who created the deficits? You know the answer to that one: almost all of the increase in (post WW II) debt occurred during the administrations of Ronald Reagan, GHW Bush and Dubya Bush.
It's easy to get frustrated with Washington process. I know I do. But blame the Democrats for not cleaning up campaign finance, not for defending Social Security, Medicare, Medicaid, vets pensions, student loans, and Food Stamps.
--Charles
Bondad It is intellectually dishonest to accuse both parties of being equally culpable. As noted Social security is 85% funded and the other 15% would be easily reached by just raising the cap on earnings to 125K. As far as Medicare the voucher solution proposed by Ryan does NOTHING to fix the rising costs it just reduces outlays by the government. The Democrats are being held hostage for more tax relief for millionaires and for deficits this administration inherited 85% of. The reason there is gridlock has everything to do with the false equivalency promoted by the lazy media that props it up. You are intelligent and usually circumspect but on this issue you are wrong
You are just wrong.
Sorry, bonddad, I dont think you are being logical. The Dem healthcare law cut 500 billion from Medicare, and put into place reforms to slow the growth in costs. Is that enough? No, but it's start. With this year's budget bill, and the talks on the debt ceiling, Obama has shown he is willing to accept spending cuts, if the GOP will agree to tax increases. But not even one Republican will agree to let the tax cuts on the rich expire.
Here's my prediction: Democrats are going to give in to Republican demands for severe spending cuts to get a debt ceiling increase because that way, when the economy double-dips as a result of it by next spring, Democrats will be able to say, "See! We told you Republican Austerity was a bad idea!"
At that point, the pivot begins: President Obama makes a major campaign announcement proposing a new New Deal, vowing to govern more like FDR than Hoover if The People re-elect him to a second term and give him the Democratic House and Senate he will need to get it passed.
And actually, I think it will work.
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