At a congressional hearing last week Treasury Secretary Geithner said he doesn’t think “there's good evidence in support of the proposition that it's regulatory burden or uncertainty that's causing the economy to grow more slowly than any of us would like.” A new analysis by Treasury attempts to support that view. What’s missing are the facts about what's actually happening on the ground with small to mid-size business owners.
Yes, of course demand is a key issue, but Treasury discounts the role that new and forthcoming regulations (and uncertainty about taxes) is playing in investment and hiring decisions. Such spin by the President’s top economic policy advisor simply means policy conditions will continue, which means more weak results for job creation and our economy.
We don’t know why the Administration doesn’t take at face value what small business owners are saying.