Ferguson: Why No Jobs? Tax Hikes Ahead(biz scared by prospect of Bush tax cut expiring)

Harvard economic historian Niall Ferguson has an explanation for why unemployment remains stubbornly high at 9.5 percent. It’s the threat of tax increases as the Bush tax cuts end this year.

“Why is it that small- and medium-sized businesses in the United States today are not hiring? Why is it that they're not expanding?” he said on CNN.

“It's because they see the tax hikes coming that are implied by this fiscal policy.”

The United States is running a budget deficit estimated by the White House at $1.47 trillion for this year. And the government debt burden totals around 10 percent of GDP.

The Bush tax cuts of 2001 and 2003 are set to expire Dec. 31. And some experts say the scheduled hikes will severely hurt small businessmen.

Tax hikes are part of it.

It’s also because marrying employees is a tough and thankless and risky task.

Yea, I said that right... “marrying”. With all the laws and regulations, it isn’t “hiring” anymore. And marrying someone is always daunting.

...Elimination of the middle class.

The Stimulis money could have been used as a tax credit for Americans and business owners to pay down debt. Instead the administration saw fit to throw cinder blocks to drowning Americans. Hence our economy is in the toilet by design, courtesy of this Socialist President and his cohorts in Congress and the anti-Americans in his Regime.

Who needs foreign enemies when we have home-grown ones in political office? The more the gov't mucks around, the worse things get. These knee jerk reactions in lieu of any sensible stable long-term policies are one of the main reasons the business sector is shutting down.

Our communist President is going full speed to run America into bankruptcy. But Biden said this was going to be 'recovery summer.' Nothing will improve until Obama is removed from office. Businesses cannot make any moves due to the uncertainties of this administration. The process starts in November 2010. Conservatives must capture at least one house of Congress. Two would be even better. Only in this way will the madness stop. But then Obama will freak and start issuing executive orders like a Caesar and that will cause a Constitutional crisis.

Keynesianism has failed. It's failed so bad in Europe, Greece actually has to start selling portions of it's country! Obama and his morons have spent 2 trillion bucks and we got jack to show for it!

And so, we're in deep, deep economic trouble. And these liberals are going to friggin' sing and dance along, all the way, as they dance off a cliff.

WAKE UP AMERICA!

Another possibility is that the businesses that are hanging on to their 1.7 trillion cash are expecting the things that they may buy to get cheaper. That is, they believe the probability of deflation from an economic collapse to be greater than the probability of inflation from the massive deficit spending induced by the Obamunists and their Rat allies.

If businesses were expecting that inflation were right around the corner, they would be spending their cash wildly, rather than hoarding it.

BTW, I’ve been following this same strategy myself: hoarding cash and selling worthless assets such as stocks, bonds, etc. I figure if this strategy is good enough for American industrialists, then it’s good enough for me.

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