When businesses of all ilk make decisions that involve investment of human or other capital, the drill is to minimize uncertainty to the greatest extent possible. Uncertainty exists and will never be reduced to zero for the mere fact that we cannot predict the future – we project it based upon our assumptions, and revise our projections with each passing kernel of knowledge.
Humorous (in a macabre sense) is the predicament of doctors under the Obama Administration. Let's set aside the sweeping nationalization of their industry (that's the humorous part). For a doc in practice today, they haven't a clue what their Medicare reimbursement rate is going to be. Current law has it collapsing, and democrats have merely kicked that can down the road several times without a permanent fix. They also do not know what their tax rates are going to be a mere four weeks from now. And since doctors crank cash, they are at the center of Obama's populace-driven rhetoric. And as if to add a little salt to the wound, Obama has finally stepped out of the closet on energy: Instead of saying he was going to allow drilling while not approving any permits and all the while spitting out new regs like a busted fire hose, now he's come out and killed large portions of drilling which will translate, obviously enough, to increased energy costs. We don't even need to address his backing of ending the Section 199 tax deduction for just the domestic energy industry.
Many other industries are affected by the above issues, as well as other issues including financial regs, food safety, net neutrality, ad fricking infinitum.
The entirety of the Obama Administration can be summed under a single phrase: The Uncertainty Principle in Practice. This is why – and solely why – the economy is stagnant. When risk grows, being the embodiment of uncertainty, investment plans are shelved until risk can be mitigated or transferred.
Will we see economic growth? Of course. As the economy falls apart, opportunity arises for established players to fill in the holes left by the dead and dying. Wal-Mart loves this economy. Instead of planting a new store in a semi-rural area, according to their historical pattern, and then killing off the local businesses, now they just follow the Bankruptcy Times, plot the filings on their Google Map, and out pops proposed new locations. How very cool. Wal-Mart to the rescue!
It's appalling to watch this guy. While President Clinton brought in the professors, it seems as if Obama is capable of bringing only graduate assistants. To be sure, academia is singularly incapable of running government and understanding its impact on business-investment decisions. But, c'mon guys, give us something to rely upon, willya?
Sent from my iPhone
No comments:
Post a Comment