Three economists briefed reporters at API this morning on economic uncertainty and its paralyzing impact on U.S. businesses and farms.

Chief Economist Dr. Martin Regalia of the U.S. Chamber of Commerce said businesses are holding about $1.8 trillion in cash, which is $600 billion more than usual. The reason: Many businesses believe it's too risky to invest money when so much is unknown about the economic and political climate.

"The uncertainty is palpable," Dr. Regalia said.

Key to the ongoing uncertainty is congressional inaction on the Bush administration tax cuts. They expire at the end of 2010, and if they are not extended, both large and small businesses will face sharply higher effective tax rates. As a result, many businesses are reluctant to expand or hire new workers.

Dr. Robert... more »

Sen. Lisa Murkowski (R-Alaska) yesterday introduced a bipartisan disapproval resolution to prevent the Environmental Protection Agency (EPA) from regulating greenhouse gas emissions (GHGs) under the Clean Air Act.

Calling the proposed regulations an "economic train wreck," she told the Senate:

"...I continue to believe that this command-and-control approach is our worst option for reducing the emissions blamed for climate change. The Clean Air Act was written for Congress to regulate criteria pollutants, not greenhouse gases, and its implementation remains subject to oversight and guidance from elected representatives."

Murkowski said EPA's GHG regulations could close businesses, lay off workers, restrict U.S. energy production, make housing less affordable and raise the price of consumer... more »