How is the regulatory climate in Washington effecting business? In a BigThink video attorney Ken Mehlman addresses that very
issue.
The biggest point Ken
Mehlman touches on is how there is a tremendous amount of businesses that
are currently sitting on cash, to the tune of $3 trillion that is just waiting
on corporate balance sheets.
He believes that part of the reason behind this is that CEOs
are looking to the future and seeing all the regulation that is currently in
the pipeline and expecting that the cost of employing people is going to go up
in the future. Between healthcare legislation, the cost of capital due to Base
III, and tax increases, most businesses see putting some cash aside as a safe
bet.
And while Mehlman argues that there very well might be
societal benefits from these increased regulations, he suggests that if your
goal is maximum employment, the increases in cost of hiring workers could be a
detriment.
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