Letter: Debt ceiling problem leads to financial turmoil
Why the fall-off in job creation? Sunday’s pundits postulated everything from ObamaCare, to the weakening economy to the rise in oil prices. Maybe, but I believe that the reason is more fundamental: employers are uncertain and apprehensive as the debt ceiling problem falls due.
Standard & Poor’s didn’t talk of lowering the U.S. credit rating because of a weak economy, but rather because they could see no resolution coming out of the present Congress. More and more it appears that they were spot on. Like the Barbary pirates, the members see themselves as having a hostage and they even have the hubris to openly declare that they are going to get everything they can in ransom.
I’m terribly afraid that the end result is going to be a period of financial turmoil running, as S&P predicts, through the next election.
One hires more people, not because they have the resources to do so, but because they need more people to provide the goods and services demanded of their business. The economy is improving and demand is growing. Hiring, though, requires an initial investment in administration and training, which takes time to recoup. Making the commitment requires some confidence in the future—confidence that Congress will have the wisdom and single-mindedness of purpose to solve the debt ceiling dilemma without requiring a plate of pork in return.
So, who could blame the employer who decides to hold off until the turmoil is over?
Cobbs Creek, Va.