Dr. Boozman's Check-up
The Weight of Economic Uncertainty
Nov 09 2011
A majority of small business owners believe the U.S. is in a recession or will be within a year, according to the Sage Small Business Economy Study. 64% of small business owners who participated in “The Sage SMB Perspective on Economic Recovery” hold this view of the economy, despite President Obama’s claims that the economy is better off after the passage of his “Stimulus” plan.
Perhaps more alarming, 77% of those polled, do not plan to hire any additional employees in the near future and 8% are planning to downsize.
Why all this pessimism? The common thread in the answers of these respondents is the climate of uncertainty that hangs over our economy. Most of that uncertainty can be attributed to the overregulation of the private sector the Obama administration continues to engage in.
This Administration, like no other in recent years, has abused the regulatory process. Last year, the Obama Administration finalized 3,573 new rules—the costs of these new regulations amounted to $1.75 trillion—nearly 12% of GDP.
Even many rules that have merely been proposed, not even enacted, are hurting our economy. Businesses, both big and small, need to plan ahead to succeed. With so many proposed rules, it is nearly impossible for a business owner to plan with any degree of confidence. This uncertainty is as large of an obstacle to our recovery as the regulations implemented. If business owners don’t know what their tax rates and energy, healthcare and compliance costs are going to be, then the last thing they are going to do is hire a bunch of people.
Quite simply, fear of the effects the next wave of regulations serve to further push small business owners to the edge of uncertainty.
To encourage investment in small business, the heart of our nation’s economy, we need to provide business owners and investors with the predictability they need to make sound investment decisions. In order to accomplish this we need to rein in spending, reform our tax code, reduce regulatory burdens imposed by government agencies, increase exports with the trade partners and create a new energy policy that allows us to use American resources and make us less dependent on foreign oil.
We have a plan that accomplishes all of this— The Jobs Through Growth Act.
The Jobs Through Growth Act is the right approach to long-term economic recovery. Job creation cannot happen in a vacuum. The environment of uncertainty created by President Obama’s policies of excessive spending and overregulation is preventing a recovery from even beginning. This bill combines a broad range of market-based solutions that will help turn the economy around by encouraging private sector job creation and economic growth. Let’s pass this bill and get unemployed and underemployed Americans working again.