Playing the “Regulatory Uncertainty” Card

Is America’s economic recovery being stymied by the “uncertainty” associated with new or changing federal regulation? Are businesses standing on the sidelines while they wait for the rule-making whirlwind to settle? Remapping Debate recently set off in search of real-world confirmation of this oft-heard claim — one made, over the past year or so, by a multitude of public officials, pundits, academics, and corporate leaders and lobbyists.

Judging by the results of more than a dozen interviews and a similar number of phone and email inquiries, it appears that few of those asserting a link between regulatory uncertainty and diminished business investment or hiring are prepared to provide any specific evidence of such a connection (see box). Even in conversations with business managers and owners who have publicly made this claim, it soon emerged that what truly concerns them, in most cases, is stronger regulation rather than uncertain regulation. And even among the uncertainty theorists whose own companies have been downsizing or holding back of late, most ultimately agree that it is the bad economy, not regulation, that accounts for a greater share of their current reluctance to take investment chances.

Read the rest of the commentary here.

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