Politics from the Palouse to Puget Sound

Thursday, July 22, 2010

Obama's Rhetoric Stalls Economy

Obama fired Shirley Sherrod because he was afraid of what Fox News might say. Corporate America are reluctant to invest their earnings and hire new workers because of what Obama does say.

In the eyes of corporate America, President Barack Obama relied on a healthy dose of industry-bashing to sway votes in Congress for health reform and the new Wall Street regulations signed into law Wednesday.

Now those efforts threaten to undermine the one agenda item essential to Democrats’ hopes in the midterms and Obama’s chances for reelection: turning around an economy still just a half step out of recession.

Some corporate leaders said Obama’s comments prove that he’s hostile to business. Others cited corporate fears of a credit crunch as banks comply with financial reform or the possibility of significant tax hikes if the Bush administration tax cuts are allowed to expire.

But it all adds up to a lack of confidence in Obama among some in corporate America — and that’s fueling a reluctance among executives from Wall Street to Main Street to deploy their large cash reserves to make new investments and hire new workers.

That, in turn, has made a positive shift in the economic climate less likely, especially in the short term, when Democrats need it most.

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