One of the biggest challenges that our economy faces is restoring “real” trust in our government leadership by the business community. Without such trust, it’s doubtful we are going to see many new business start-ups or meaningful job creation. Oh, sure the giant multi-national corporations will be doing Merger and Acquisition deals, since they are sitting on lots of retained earnings and cash, but remember when you merge companies to gain synergies and economies of scale in the free-market, you generally cut jobs, not add them.
There was an interesting article worthy of note which somewhat illustrates the thought on this uncertainty principle recently in the Wall Street Journal on November 19, 2010 titled; “Few Businesses Sprout, With Even Fewer Jobs,” by Justin Lahart and Mark Whitehouse. Heck, I’d like to put Mark in the Whitehouse, he seems to get it. Anyway the article had all the charts and graphs to prove every word of those who proclaim, the uncertainty of regulation, economic policy, and the Administration’s next attack on business and free-markets speaks for itself.
Now the, lets discuss a side bar topic on this uncertainty principle shall we? Because there is another problem we have and that is that when the Democrats are in power, often corporations are fearful that they may side with the unions and change the rules. If they change the labor laws, then that unbalances the situation, and makes future planning for their Corporation nearly impossible. It could happen in the auto industry, the airline industry, the shipping industry, or any other industry for that matter.
If we have a sympathetic Congress to labor, and they dismiss the needs of the Corporation, then they are unbalancing the playing field which has worked itself out through courts, laws, and disputes. It’s hard enough to run a business when the economy is bad, but it’s even worse when you can trust the government to make new laws concerning labor. Please consider all this.