Sunday, June 5, 2011

Why businesses are slow to expand because...

via Paul Krugman, citing a survey from the National Federation of Independent Business.  Get ready for the microeconomic shock of your life...

Businesses are slow to expand because of the poor economy!

Please note, cost of expansion is not critical at all right now, according to businesses. And it's no wonder right? -- because labor costs remain flat, borrowing costs are certainly low, and there's plentiful skilled labor out there, itching to work.

But Republicans have managed to trick people into believing that taxes are negatively affecting expansion plans by adding costs and that government spending is crowding out private spending by increasing labor costs; yet none of that is reflected in the survey.

So who are these people that continue to vote Republican, anyway?  Or are we dealing with mass cognitive dissonance?

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