Corporate profits hit a record $1.74 trillion last fall, up 17.9% from 2011, but as the economy continues to recover, why aren’t those profits translating into more jobs?
The CEO of the U.S. Chamber of Commerce Tom Donohue told The Daily Rundown’s Chuck Todd Friday that President Obama’s regulatory policies on the business community are still blocking the way to prosperity. “If I’m running a big company, I’m waiting to see what happens on taxes, spending and the regulatory circumstances before I decide…am I going to hire more people, am I going to expand and where am I going to do it.”
Donohue acknowledged that the president has the bully pulpit when it comes to economic policies, but said that Congress’ threats to use the debt ceiling as leverage in the fight over spending is the “least desirable” option. He added that the need for spending restraint, more savings in entitlement programs, and tax reform may force Republicans to play the hand they’re dealt.
“We need economic growth and jobs [and] we need a major deal on spending,” says Donohue. If Republicans settle for anything less, “It might be a political victory and [still] be an economic tragedy.”