Business "Confidence" And Obama
Apparently Paul Krugman faced some Chamber of Commerce hack this morning on TV repeating the missing confidence fairy argument about the economy:
So I didnít have much time to take down the Chamber of Commerce guy on This Week today [--] youíll see a lot of businesses complaining about the political climate ó hey, a lot of them watch Fox ó but very few actually saying that this climate is deterring expansion[. . .] Itís the weak economy thatís deterring growth, not the atheist Socialist secret Muslim Kenyan Hawaiian in the White House.
It reminds of me what former Bush Treasury Secretary Paul O' Neill said last August:
I must say I'm kind of amused by some of the conversation about companies hoarding $1.5 trillion worth of cash, or something, because I had a rule when I was in the private sector for 25 years, including 13 running Alcoa, and that is, don't hire people unless you have somebody demanding goods that you can't produce with the people you already have. Right? So it seems patently unrealistic to me to urge people to spend money unless there's a demand that they're not able to satisfy with their existing resources. [. . .] Why would you? I mean, it's crazy. It's not a charitable function if you're running a business to say oh, my goodness, we have so many millions of people unemployed, I should rush out and spend my cash and hire more people if there's no demand for the goods. It's crazy to me. [. . . More]
[W]hen I was in big enterprises, I kept a wary eye on Washington, but my decisions were not guided by research and development tax credits and whatever mischief they happened to be up to at any particular moment. I paid attention to customers and potential customers, and getting more people to use our product around the world [. . .] So I think an awful lot of this conversation about as though Wall Street's upset with Obama, it's all -- it's because people don't have something sensible to talk about, I suppose. I don't think there's much merit to that conversation.
(Emphasis supplied.) What he said.
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