The recovery from the great recession of 2008 has been extraordinarily slow.
Now, as more data is available, the reasons for this sluggish convalescence are becoming evident. Businesses, uncertain of what the future holds, are not investing. The piles of cash that large American and Western European businesses are now hoarding provides proof.
Interviewed executives of Western European companies have explained that uncertainty about the euro is the reason. In America it’s the “fiscal cliff”.
Recently announced statistics reveal that unemployment is now below the magical 8% figure. Two researchers from the Federal Reserve Bank of San Francisco have established that unemployment would be 1% lower, were it not for the uncertainty.
The politicians will be pointing at each other, and for once they’ll be right.