The power of uncertainty
Q: Although they now have record amounts of cash on their balance sheets, corporate executives have been reluctant to hire and invest, complaining loudly of a new "anti-business" attitude in Washington. Is this public criticism courageous business leadership or an abdication of personal and corporate responsibility?
Business investors hate uncertainties over which they have no control. They see an Administration that wishes to tax and regulate in new and unknown ways and that demonizes any large enterprise that criticizes its policies. That perception breeds caution. Perhaps it is unwarranted, but it is real.
Investment will follow certainty, even a relatively unpleasant certainty. And that, a predictable future, can only be provided by the Administration itself.
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