Cap and trade, Obama care, card check…. Legislation all that has not yet been passed but is the mere specter of these job-killers chilling the economic outlook to the point that small businesses are not hiring and thus continuing to contribute to the rising unemployment rate?
Many business owners I have talked with say they are scaling back and not hiring because of the uncertainty of this political climate. Even if the economy recovers, many small business owners will stay on the sidelines because it may be too expensive for them to do otherwise. It's a capital strike as described in Amity Shlaes' excellent book, The Forgotten Man.
Small businesses because of their flexibility are at the leading edge of job recovery in a recession, a recovery that has yet to materialize. And because of the nature of small businesses they will be more risk-averse to taking on new hires if they feel the business climate is too hostile.
Dr. Helen asks if small businesses "going Galt" will be Obama's downfall, here.
P.S. Picture (from our recently-concluded roadie) is looking east towards the Henrie Mountains from the Waterpocket Fold region in the Capitol Reef National Park in Utah.
Nice road trip,
Check out over at Head Noises for a little nastalgia.
Thanks Ms. Fier!
I'm not up for the small businesses going Galt line. I think that's a lot of projection. They aren't hiring yet because that's not where we are on the recovery curve.
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