- #36
ParticleGrl
- 335
- 23
Mech_Engineer said:The problem with the economy (especially investments) isn't the lack of liquid capital, it's an uncertain future. No one wants to invest in the economy not because it's "weak," but because they can't make a safe bet that they will get a solid return on their investments.
This doesn't play out. By all indications, small businesses WANT loans, but can't get them secured at the rate they want. That screams credit risk, not "regime uncertainty."
...This I think could get us on the right track.
All of your suggestions amount to income tax breaks- we already have specific breaks for employers who do all kinds of things. Its why our "on-paper" tax rates are so high and our effective tax rates are so low. Also, shouldn't the 'regime uncertainty' be priced into US treasuries? Or the AAA corporate bond markets? Why is it ONLY showing up in small business loan rates?
Also, don't you think its suspicious that the obvious measurable variables tell one story (lots of people are unemployed, unemployed people don't buy stuff, companies ARE meeting the reduced demand, bond rate are low, interest rates are low), but somehow SECRETLY its all about Obamacare?
By your logic- shouldn't lowering taxes ALSO create uncertainty- after all lowering taxes today will probably lead to larger taxes in the future to pay down the resulting deficits? Shouldn't taking health care away from people increase consumer uncertainty? What about reducing food stamps/medicaid/COBRA for the people out of work? Why is business uncertainty more important than consumer uncertainty?
Anytime you have an explanation that you would trot out ANYTIME the economy is weak, regardless of money markets, unemployment, etc, you have a worthless explanation. Its not even wrong.
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