What's Stopping Job Creation at Medium-Sized Firms? It's Washington's "Climate of Uncertainty"
Because he faces a "climate of uncertainty" created in Washington, the successful business owner refuses to hire new employees despite rising demand and sales for his company's products.
About the businessman and seat-mate, Professor Carter writes:
"He’s not anti-government. He’s not anti-regulation. He just needs to know as he makes his plans that the rules aren’t going to change radically. Big businesses don’t face the same problem, he says. They have lots of customers to spread costs over. They have “installed base.”
For medium-sized firms like his, however, there is little wiggle room to absorb the costs of regulatory change. Because he possesses neither lobbyists nor clout, he says, Washington doesn’t care whether he hires more workers or closes up shop."
MP: Thanks to the anonymous businessman for making a very strong "laissez-faire" ("allow to do" in French) case for job creation.
HT: Pete Friedlander