Kimberley Strassel nails the danger of playing with matches:

For an administration that claims to know its political history, the White House appears to have misread at least one decade. FDR was re-elected in 1936 for many reasons, but among them was his fiery denunciations of "economic royalists," "economic tyranny," and "economic slavery." Business knew it was in the president's crosshairs and put its capital on strike. The economy didn't recover until the war.

Team Obama is already witnessing a repeat. The U.S. economy ought to be flying out of recession. Yet bank lending is sluggish. Companies refuse to hire. Business is going elsewhere to raise capital: China last year outstripped the U.S. as a center for initial public offerings. The market gyrates on Washington's latest political drama.

A venture capitalist recently remarked to me that the uncertainty the administration has created is "nothing short of paralyzing." Nobody will invest in an industry that might be the next to be overtaxed, overregulated, or publicly disemboweled.

A call for empathy from Tom Donohue in the State of American Business:

Think for a moment about the nation’s job creators—the men and women who run our small and large businesses—as well as those who lead our universities, our health care facilities and the many other institutions that employ our workforce. If you were in their shoes today, would you jump quickly into new investments and hiring? Or would you wait for some clarity, and some common sense, to take hold first? Most of these job creators would like nothing more than to keep their workers employed, create new jobs, and bring some hope and relief to families struggling without a paycheck. But when they look at what’s going on in Washington, in the states, and around the world, what do they see?

They see a host of uncertainties, that's what they see. And if you are cynical of us, the Wall Street Journal and venture capitalists, here is a twitter post yesterday out of Washington State:

I could be close to hiring soon. but won't. rather turn biz away than deal w/ payroll & other costs

Strassel concludes:

Not all populism is bad. There is indeed an anti-establishment anger in the nation. But the majority of it is directed at a Washington that is foisting an unpopular agenda on the country, and at the cavalier treatment of the free market that creates jobs. The president might try tapping into that.