Tags: Obama | Adviser | Demand | Economy

Obama Adviser Alan Krueger: Demand, Not Uncertainty, Holding Back Economy

Friday, 23 Dec 2011 08:13 AM

Weak demand, not uncertainty over political policies, is hampering economic recovery, says Alan Krueger, chairman of President Barack Obama‘s Council of Economic Advisers.

Many business leaders blame their unwillingness to hire due uncertainty over taxes and regulation.

"The evidence, however, suggests just the opposite," Krueger says, according to The Wall Street Journal.
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Corporate profits are healthy, which wouldn't be the case if regulations were to blame for a sluggish economy and high unemployment rates.

Furthermore, companies may blame regulation in the media for not investing in new, job-creating ventures, but they never cite regulatory burdens when firing.

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President Barack Obama and Alan Krueger (left).
(Getty Images photo)
"If regulatory uncertainty was hurting companies, why would corporate profits be at record levels?" Krueger asks.

Still, many CEOs insist that unemployment rates would be lower if the government would hold off on unleashing regulations such as the Dodd-Frank financial reform law.

Political uncertainty such as the constant bickering and blame associated with raising the debt ceiling in August has served as job-hampering uncertainty as well.

"Like everyone else, we need certainty when we get up in the morning and go into the office and worry about how many people we are going to hire," says Lisa Hook, chief executive officer of Neustar, a provider of telephone and Internet directories based in Sterling, Virginia, according to Bloomberg.

"If we don’t have a budget resolution, if we don’t have a debt-ceiling resolution, that nevertheless impacts our stock."

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Weak demand, not uncertainty over political policies, is hampering economic recovery, says Alan Krueger, chairman of President Barack Obama s Council of Economic Advisers. Many business leaders blame their unwillingness to hire due uncertainty over taxes and regulation. ...
Obama,Adviser,Demand,Economy
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2011-13-23
Friday, 23 Dec 2011 08:13 AM
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