Posted by swamphawk22 on 5/17/2012 11:40:00 AM (view original):
By showing that our government is moving in the right direction and not getting caught up in the European debt crisis the business community could invest with confidence in the American economy.
Ok, let's put ourselves back in the shoes of a business owner.
You own a light bulb manufacturing company.
What kinds of things does a business owner like you do when you want to reinvest in your company? You can provide training to your employees. You can hire more employees. You can buy new equipment. You can buy or lease more space. I'm sure there are others, but let's stick to those for now.
We were in a large recession. Your sales (along with just about everyone else's) are down. Way down.
You have more employees than you need. In fact, you are considering layoffs. Most of your machinery isn't being used, so it doesn't need to be replaced.. You defintely aren't considering buying a building or expanding operations.
At what government debt level would you start hiring more employees? At what government debt level would you buy equipment to replace the equipment you aren't using? At what government debt level would you move to a bigger building to replace the one that you aren't fully using now?
The reality is, business owners don't make operational and investment decisions based on the governments' debt status. But they do make operational and investment decisions based on demand for their product.