Trump Talk:LIVE WITH JEFF CROUERE

Friday, 09 November 2012 10:24
Obama win, Congress status quo likely means US economy falling off fiscal cliff
Written by 

fiscal-cliffThe French have an expression: “Plus ça change, plus c’est la même chose.” The more things change, the more they stay the same.

 

 

 

That may well be the most accurate description of the outcome of the 2012 national elections. Entering election night, Barack Obama was President, the Democrats controlled the Senate, and the Republicans controlled the House. The morning after the election, nothing changed except the shift of a few seats. If the voters were tired of the status quo, if they wanted to blow up gridlock, and if they thought Congress was as despicable as all of the polls indicated, they sure didn’t act on those emotions.

Inertia may have won the elections, but forces are at work to make sure that things don’t stay the same. Those forces will have an immense impact on businesses, the economy and the fate of millions of workers both employed and unemployed.

If nothing changes between today and New Year’s Day, hundreds of billions of dollars in tax increases and critical budget cuts will occur. If only one of those things were happening, the economy would be significantly impacted. Doing both at once will have a huge impact on a lethargic economic recovery. The “Bush” tax cut sunset along with not renewing the payroll tax cut and addressing the Alternative Minimum Tax will drive up taxes by $500 billion in 2013, an average of $3,500 per household. Anything resembling that amount of money going out of the economy cold turkey will greatly diminish consumption and fuel recessionary fires.

Since Congress and the president could not agree on spending cuts to rein in the explosion of federal debt and deficits, they passed legislation that would automatically cut spending across the board in defense and non-entitlement discretionary spending by $1 trillion next year. Cuts of that magnitude will result in hundreds of thousands of lost jobs and further weakening of the economy. Businesses have a huge stake in how the “fiscal cliff” is resolved. So do their workers. There isn’t much hope about how this change is going to be handled.

The status quo in the legislative and executive branches creates additional concerns for the business community. Trillions of dollars of job-creating investment capital have sat idle on the sidelines recently. Many businesses have wondered about what their tax rates would be, a critical factor in determining investment strategies. Exporters already struggle with paying the highest corporate taxes in the world, much higher than their competitors in the foreign countries that buy their exports. Increasing business taxes will only make the situation worse.

The explosion of federal regulations and their costly impact on business operations and profitability will likely continue to expand in President Obama’s second term. Those regulations increase costs and stifle productivity, often with little positive impact gained by consumers. The one area of uncertainty that has been removed due to the election—the fate of ObamaCare—is not a plus for job creation. In fact, it is the opposite. One of the biggest potential areas for rapid job creation and economic growth in our economy is energy exploration and production. Shale drilling and federal lands development could help reshape our economy, the job market, and the availability of affordable energy for consumers. Unfortunately, President Obama’s regulatory policies that have suppressed this development are likely to remain the same—if not get worse.

If more government creates true value-added jobs, reduces the debt and deficit, and fosters sustainable economic growth, then Election 2012 was likely a step in the right direction. If not, then the French probably had it right.

by Dan Juneau, President, CEO of LABI, Louisiana Association of Business and Industry

 

{jvotesystem poll=|40|}

 

Page 1 of 3

  1. Fiscal cliff 'bigger threat' than eurozone

    Obama plans fiscal cliff statement as showdown looms

  2. RECESSION WARNING:'Fiscal cliff' could shrink economy
  3. Video: Condoleezza Rice talks GOP identity

 

 

Will Saints be in the Super Bowl?

  
 More New Orleans Saints news    
Join the Saints GroupNew Orleans This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

              

 

 

 

  Want more Louisiana news?               

 

 

 

Louisiana News

Louisiana Politics

Louisiana Business

Louisiana Government

             
 Baton Rouge News

Lafayette News

Shreveport  News

New Orleans News

   
Signup for Our Newsletter

qr

Scan the QR Code above using your smartphone to signup for our newsletter.

Login to post comments
Powered By JFBConnect
  • LABI's Waguespack pokes Edwards tax delay, promotes Louisiana Legislative outlook
  • Louisiana ranked 25th in medical doctors, hospitals
  • Quin Hillyer: Freedom Caucus,hardliners "just Screwed the American people"
  • Trumpcare loss a mere distraction from RussiaGate

wag edwards tweetIn the age of rapid response, social media, President and CEO of the Louisiana Association of Business and Industry took to twitter to apparently poke the Democrat Governor and to promote his own tour of his own legislative package, or legislative outlook tour, beginning today.

Today, Stephen Waguespack of LABI tweeted in response to The Advocate’s Tyler Bridges article that John Bel Edwards would be delaying his release of his tax overhaul package that was scheduled for today.

Read More

doctors wallet hubWith Louisiana's Louisiana legislative session about to commence early April, the state has another ranking to consider--how it ranks for medical doctors.

 

Read More

quin hillyer health 5Have the conservative Freedom Caucus and advocacy organizations such as Freedom Works and Heritage Action "screwed the American people"?

That's the feeling expressed by at least one long-time conservative Republican, who, as millions of others were outraged by the destruction of the Obamacare "repeal" and replacement, on Friday.  

Read More

comey sitThe GOP will likely claim that the bogus “ Assisted suicide counseling” will still be covered since Obamacare remains the law of the land. That’s good news for GOP legislators who planned on voting “yes” on its repeal. The rich, also, should be happy the old law remains because they have wounds that need tending after the mega tax breaks for them that were inserted in Trumpcare went the way of leeching. The failure to repeal, of course, is the Democrats fault. Trump said so, but he has reason to be happy, too. The health care debacle managed, if just for an hour, or two, to deflect attention away from Russia.

Read More

latter-blum2

TRUMP TALK

Trump Talk: Ryancare, Russia, Investigations, Travel ban--with Jeff Crouere

Dead Pelican

Optimized-DeadPelican2 1 1