Friday, September 03, 2010

Gibbs, Hayes, and Economic Uncertainty

In the twitter war between The Weekly Standard's Stephen Hayes and White House spox Robert Gibbs, Gibbs cited this USA Today article to support his case for the President's small biz bill that's currently being held up.

However, I don't think it quite makes the case Gibbs thinks it does.  In fact, it makes the opposite case if you look at it right [Bold added for emphasis]:

Kaur's is among about 1,000 other small businesses that "have their bank papers all done and will be funded in the days — moments — after the bill passes," says U.S. Small Business Administration Administrator Karen Mills.

In Kaur's case, she's concerned that the property seller is going to get antsy as she waits out the political decision-makers. "I keep asking my seller if he can give me a couple more weeks," she says.

Many other businesses have paused expansion as they wait for the outcome of the bill, says Bob Coleman, publisher of the Coleman Report, which provides information on small-business lending.

Some businesses can save thousands of dollars on the waived loan-fee provision alone, and they are thinking, " 'I might as well hold off and save the money,' " he says.

What I'm seeing here is that there are a lot of deals that are going to be done anyway, and folks are (rationally) waiting to see if they can stick their hand in the government cookie jar.  Meanwhile, Rome burns.

I'm not usually one to trot out the uncertainty line, as I think precious few people understand it, but this is a prime example of uncertainty killing jobs.

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