The View From 1776

Quote Of The Day

Kim Strassel in the Wall Street Journal:

For an administration that claims to know its political history, the White House appears to have misread at least one decade. FDR was re-elected in 1936 for many reasons, but among them was his fiery denunciations of “economic royalists,” “economic tyranny,” and “economic slavery.” Business knew it was in the president’s crosshairs and put its capital on strike. The economy didn’t recover until the war.

Team Obama is already witnessing a repeat. The U.S. economy ought to be flying out of recession. Yet bank lending is sluggish. Companies refuse to hire. Business is going elsewhere to raise capital: China last year outstripped the U.S. as a center for initial public offerings. The market gyrates on Washington’s latest political drama.

A venture capitalist recently remarked to me that the uncertainty the administration has created is “nothing short of paralyzing.” Nobody will invest in an industry that might be the next to be overtaxed, overregulated, or publicly disemboweled.

Add to that uncertainty the administration’s new populist bent, and it’s a recipe for a continued capital freeze. “People in the economy are thinking about whether to invest or take risks when what they are seeing are early signs of Hugo Ch

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