Tax cuts, the certainty factor, and job creation

Now that the Bush tax cuts are officially extended for the next two years, a significant question remains: Is the U.S. economy really in recovery mode without job growth? The answer is “no” and here’s why. Robust job growth always defines true, sustainable economic recovery. When firms modernize their infrastructure, update their technology, and install new equipment, they do so as part of a plan to increase sales and profits. When companies put more money into research and development, improved manufacturing output, and new facilities, these capital expenditures all have a clearly identifiable return on investment, or ROI. … David Newton is Professor of Entrepreneurial Finance and heads the entrepreneurship program at Westmont. more

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