Dennis Anderson, a Democrat running in the 14th Congressional District issued a statement in response to Randy Hultgren’s comments on the American Recovery and Reinvestment Act, otherwise known as the Stimulus Bill. In a statement released on Friday, Hultgren labeled the stimulus bill as an ultimate failure and that the President is continuing down a path of “reckless spending, higher taxes, and continued borrowing.”:
“The facts are indisputable. Since the bill took effect, 1.8 million jobs have been added. President Obama has passed more tax cuts than Presidents Kennedy, Reagan, or George W. Bush. Access to capital has been expanded. Corporate profits have now reached a 50 year high. So, what’s Representative Hultgren talking about?”
Anderson believes that much of the problem rests in uncertainty over the economy but contends the Republicans are being less than forthright over the type of uncertainty businesses face.
“The highest points of unemployment came during periods of extreme volatility in Washington when Republican opposition over everything created the uncertainty. No one wants to invest in Greece because every time the political winds shift so does policy. If deregulating the economy would lead to economic success, it would have happened when President Carter took those first steps. The unregulated financial sector would never have collapsed. “
What Anderson is talking about is the ability of companies to forecast profits and therefore make determinations on expenditures. Currently, businesses are hesitant because they’ve already made plans to operate under new ethical guidelines but the Republican mantra of undoing everything passed under President Obama is making businesses nervous. There is evidence to back up Anderson’s critique. According to a report by the IMF released last year, political instability negatively affects economic growth. This is one of the prime factors that Standard & Poor cited in their downgrade of the US Credit rating. Furthermore, a Lake Research poll indicated that 78% of small businesses do not see regulations as a hindrance. The poll was commissioned by three national business organizations.