With Obama’s Reelection, Business Investment Falls off a Cliff
The article in the Wall Street Journal begins, “U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.”
But why? The U.S. election settled the question of who will be president for the next four years? Shouldn’t that have eased uncertainty?
Corporate executives say they are slowing or delaying big projects to protect profits amid easing demand and rising uncertainty. Uncertainty around the U.S. elections and federal budget policies also appear among the factors driving the investment pullback since midyear. It is unclear whether Washington will avert the so-called fiscal cliff, tax increases and spending cuts scheduled to begin Jan. 2.
The fiscal cliff is the proximate issue at the moment, but this is much bigger than the fiscal cliff. In fact, far from give the business community confidence, the reelection of Barack Obama has added to their fears. Unless you are one of his corporate cronies, Obama has been the least business-friendly president in modern memory, if not ever. His costly list of major regulations, business-crushing healthcare mandates, and constant harping on the notion that society’s producers need to be taxed at higher rates are adding to a climate of uncertainty that leaves business without the confidence that they need to expand and invest.
This has happened before. Back in the 1930s, FDR and his New Dealers created a climate so unfriendly to business that many simply retrenched to wait out the storm. FDR’s reaction was to tell the nation that the Montgomery Burnses of America were hoarding their cash, and that the nation needed to extract it from the greedy fatcats. So they created the “undistributed profits tax.” But instead of brining in lots of money, it caused an economic downturn now referred to as the “depression within the Depression.”
Don’t think Obama would not do the same thing if he had half the chance. You see, the FDRs and Obama’s of the world . . . and all of their cronies and operatives . . . and every human being whose laziness, envy, and greed they nurture and then milk for votes . . . all fail to grasp a simple concept: The money they seek to take is not theirs.
They didn’t earn it. They didn’t sacrifice for it, delay gratification in order to invest for the future, or endure palpitation-inducing levels of stress to build a business that makes that money. But they don’t care. They plan to take it, and it doesn’t matter what you say. All they have to do is pander to a bunch of other people who also didn’t make it, get their votes, and then use their power not only to wrest it from you by force, but vilify you while they’re doing it.
That is the America the left has built.
Ardently devoted to the cause of human freedom, he has worked at the confluence of politics, activism, and public policy for more than a decade. He co-wrote a ten-part series of video shorts on economics, and has film credits as a researcher on 11 political documentaries, including Citizens United's notorious film on Hillary Clinton that became the subject of a landmark Supreme Court decision. He is the founder of several activist endeavors, including AnyStreet.org (now a part of Western Free Press) and Liberatchik.com. He is currently the managing editor of and principal contributor to WesternFreePress.com.