While some mainstream media outlets are downplaying the harmful economic impacts of economic uncertainty, Fortune?s Geoff Colvin sees the problem clearly:
When people aren’t sure what’s going to happen, they freeze. We all know it, and if you require validation of your instincts, check the scientific literature on “uncertainty paralysis.” When we’re unsure, we turn especially cautious.
Life is inherently uncertain, of course, but this is different. As I travel around the country, businesspeople tell me they’ve rarely felt so unsure of what the laws and rules governing their business will be. ? [T]hey sense major changes ahead — but what? So instead of investing and hiring as usual in a recovery, U.S. companies are sitting on more cash than ever. We shouldn’t be surprised. It has always been true that the more activist the administration in Washington, the more uncertainty it spawns.
