The View From Bernanke's Perch at the Fed - WSJ.com

Q&A: CART AND HORSE: The View From Bernanke's Perch at the Fed - WSJ.com: "- Sent using Google Toolbar"

Question:
People keep saying that an "anti-business" climate in Washington is preventing the private sector from putting unemployed Americans back to work. That's nonsense. Isn't it that businesses aren't hiring because the economy isn't looking very good?


Answer:
What also needs to be considered is that the 1970's was also a relative poor climate for business fiscally.

If you recall one of the issues in the 1980 election - the Democrats thought the economy couldn't grow, so they were only concerned about redistribution; the Republicans under Reagan however saw lower taxes and less regulation as a way in which business could grow.

We all know Reagan won and we all know that that economy did grow again.

You are right in terms of what business is doing now (above); however, the causes are in part that the US economy has to undergo changes which much of it is ill-equipped and opposed to doing (not too dissimilar to the 1970's and 80's (remember junk bonds?).

And today, the incentives for the economy and businesses to grow are all working against supporting the business community.

The 'cart' of a poor business climate is being led by the 'horse' of abominable fiscal and other anti-business policies.