Businesses Begin To Walk Down John Galt’s Path
Monty Pelerin / EconomicNoise.com
George Santayana said, “Those who cannot learn from history are doomed to repeat it.” Whether that is the problem with the Obama Administration is moot. An alternative hypothesis says that they know what they are doing and know that it will destroy the country as we know it.
Regardless of which hypothesis is true does not matter to businessmen. They focus only on the effects of policies not on the motivations behind them. And they are almost universal in their judgment regarding the harm that Obama’s economic policies will do. A recent post indicated how business was voting after learning of the election outcome. Simply stated, they have withdrawn into their figurative bunkers. They are trying to survive, not grow. They are laying off people and cancelling investment. They are hoarding cash. The reaction to the election was especially dramatic because businesses held off making cutbacks in the hope that Romney would return rationality to economic policy. His defeat dashed such hopes and businesses adjusted to the harsh reality of another four barren years.
Anyone who understands business or economics knows there is a train-wreck ahead. It is a wreck of the magnitude not seen since the 1930s. Given such expectations, there can be no recovery and may very well be a Depression greater than what was termed The Great Depression.
The article below is more evidence of the fear that American business has regarding the future. This fear exceeds the normal concern over an economic recovery and extends to the very survivability of the economy and nation. Prepare for matters to get worse, likely much worse.
http://www.economicnoise.com/2012/11/23/businesses-begin-to-walk-down-john-galts-path/
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