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July 01, 2010

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The wild spending that the government has been doing since 2007 has not worked. In fact many of what the government has done and is continuing to do will work to the negative. The (government) spending and the health care law has put much uncertainty in the economy. The spending alone is enough to scare most because most realize that the debt will require tax(s) increase(s). The uncertainty of the cost of health care to the companies and individuals alike makes companies large and small hesitate about adding new employees. The cost is incalculable at this time and with the expiration of the (Bush) tax cuts taxes will go up starting in 1-1=2011. With so many uncertainty why add employees when you may not be able to afford them.
With the rumor (and it may be very valid with the need to raise new taxes) that the interest on home mortgages will be no longer deductible and with the unreliable of employment people are and will not be buying houses. This is seen with the down turn of home sales after the credit expired.

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Created by:

  • entrepreneur

Authors

  • Tim Kane
    Senior scholar at the Kauffman Foundation, former entrepreneur, and veteran Air Force officer.
  • Dane Stangler
    Research manager in the Office of the President at the Kauffman Foundation.
  • Robert Litan
    VP of Research and Policy at the Kauffman Foundation, and former White House official.
  • Brink Lindsey
    Senior scholar in Research and Policy at the Kauffman Foundation.