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    « The obscurantist strategy against libertarianism | Main | Morning Joe 11/19/2012 -- Benghazi talking points and Republican confusion »

    What next?

    At Mises Robert Higgs writes about what he calls regime uncertainty. The length of our present economic downturn in reminiscent of the Great Depression, mainly because investors are uncertain what will come next from government. Obama supporters who think this reflects directly on Obama dismiss this idea and state that demand is the problem, thus government has to take up the investment slack, or the Fed has to pump money into the economy to keep it going.

    When investors watch the news and witness the attacks on Romney, Bain Capital and Wall Street in general, they wonder what's going on. Big Businesses which are connected with government don't worry, because they always win, but there are many, many business people who aren't politically connected. They also see an obsession in DC with raising taxes. Investors, entrepreneurs and business owners can do a little math and realize that raising tax rates to 39% or so will not put much of a dent in the deficit, so they know the President and congress will be back for more.

    On top of the taxes and extra costs associated with the ACA, there are environmental regulations and a generally negative atttitude coming from the political class toward wealth creators. None of this is new, and that's the problem. After decades of statist control over many economic matters, the control has expanded and reached a tipping point -- there is regime uncertainty, and nothing will get better until investors feel confident enough to invest once again to an extent that will create real, sustainable economic growth and new wealth creation.

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