Tags: Zuckerman | Obama | Business | recovery

Zuckerman: Why Obama Makes Business Weep

Monday, 03 Oct 2011 08:07 AM

U.S. News and World Report Editor Mort Zuckerman says President Barack Obama's anti-business policies are causing business people to despair of recovery ever happening.

"(Consumer confidence) numbers now match the drops seen after the Iran hostage crisis, Iraq’s invasion of Kuwait and the collapse of Lehman Brothers,” Zuckerman writes in the Financial Times.

"This is a modern day depression, only this time soup lines have been replaced by unemployment checks."
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"Of course, none of this was helped by a government that lost credibility by predicting that its recovery programs would bring the jobless rate down and growth up," Zuckerman says.

"This was the beginning of the yawning credibility gap between the Obama’s administration and business."

"The gap is being aggravated by Mr Obama’s recent sharp turn to the left," writes Zuckerman, also chairman, chief executive and co-founder of Boston Properties.

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President Barack Obama
(Getty Images photo)
Obama’s “resort to divisive populism – laying the blame on ‘fat cats’ and pillorying the president’s favorite villains – ‘millionaires and billionaires’ – is exactly the wrong approach,” says Zuckerman.

“It seeds the suspicion that the administration is more interested in campaigning and undermines the confidence that business needs if it is to invest in the face of new regulations, healthcare costs and an increased bureaucracy,” he said.

“Businesses sense that the administration no longer understands how this perceived hostility saps the animal spirits required for taking risks on expansions and start-ups.”

Weak economic growth is proving disastrous for ordinary Americans, says Zuckerman. Per capita income remains below its 2006 level, while wage-based incomes are declining.

Meanwhile, businesses are trying to enhance productivity, not create jobs, Zuckerman notes. “Polls show that business leaders are growing increasingly pessimistic,” he says. “In the past six months a third of companies have delayed or cancelled plans for capital spending.”

Portfolio.com reports that a quarterly Business Roundtable survey found that its CEO members have dialed back their expectations for sales, capital spending, and job growth for the next six months.

Only 65 percent expect sales to increase, compared with 87 percent who thought so three months ago. Only 32 percent expect to increase capital spending in the U.S., compared with 61 percent in the last survey. Only 36 percent expect to add employees, compared with 51 percent earlier. Nearly 25 percent of CEOs plan to decrease employment, up from 11 percent three months ago.

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U.S. News and World Report Editor Mort Zuckerman says President Barack Obama's anti-business policies are causing business people to despair of recovery ever happening. (Consumer confidence) numbers now match the drops seen after the Iran hostage crisis, Iraq s invasion...
Zuckerman,Obama,Business,recovery
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2011-07-03
Monday, 03 Oct 2011 08:07 AM
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