Hooray for Gridlock

by Laura Ehrenberg-Chesler on November 5, 2009

in Employment,Fiscal Policy

Crossvault’s favorite economist, Ed Yardeni, has been writing about the possibility of political gridlock, and its salutary effects on the economy.  The framers of the Constitution also saw the value in ensuring that neither party had too much power or too much control.

With the results of the latest gubernatorial elections in, it looks as though gridlock may be a real possibility going forward.  This would imply that bills like “cap and trade”, which would be a big tax on business, will not happen any time soon, if at all.

When business owners face fewer uncertainties, and fewer headwinds, they are much more likely to invest in people, plant, and equipment.  That would be a big step to putting the economy and the markets on firmer footing.

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