Paul Ryan on how to break the capital strike

Congressmen Paul Ryan (WI) and Brad Sherman (CA) join CNBC's Larry Kudlow to discuss jobs, the economy, and how to restart the American engine of growth and prosperity. Larry Kudlow: Businesses are sitting on a pile of cash. They are not investing. They are not creating jobs. Is there a capital strike, as Amity Shlaes argues? What might your solutions be to create jobs and get this economy going? Paul Ryan: Yes there is a capital strike. Look at what's coming ahead: two waves of big tax increases; much higher interest rates because of the borrowing binge we're on and because of our monetary policy; and all of this regulatory uncertainty. Every week that goes by, there is a new launch of unpredictable regulations coming from the executive branch. Entrepreneurs and investors are sitting on their hands because they don't know if they should take a risk, if they should hire people, if they should deploy capital, because they don't know if they can get a return on their investment. So what can policymakers do? Let's instill confidence and certainty: certainty on our tax rates that they won't go up; certainty on our borrowing by locking in real spending control and entitlement reforms to show we're getting our debt under control and no temptation to monetize our debt; certainty to make sure that these new regulations aren't coming out of left field. For example on cap-and-trade: if the bill goes down in the Senate, what we're hearing is that the EPA is going to do it anyway. Those kind of regulations are scaring businesses, especially manufacturers in Wisconsin. It is stifling capital. There is capital out there, but it is on the sideline, not being deployed. We need to give entrepreneurs and businesses low taxes, sound money, a plan to pay off our debt, and policy certainty -- those are the things we ought to do to grow out of this recession and create jobs. Paul Ryan's Roadmap for America's Future: http://www.americanroadmap.org Paul Ryan on the Failed Neo-Keynesian Economic Experiment:    • Paul Ryan on Washington's Failed Neo-Keyne...   Amity Shlaes recent op-ed in WSJ: http://online.wsj.com/article/SB10001... Recent House Budget Committee hearing with Ben Bernanke: http://www.house.gov/budget_republica... Today's House Budget Committee hearing on the failed spending stimulus:    • Paul Ryan on the failed stimulus: Washingt...