This isn’t hyperbole, I really don’t think Barack Obama has any idea how to grow the economy. Obama is so married to his ideology and resentment of corporate wealth that he is unwilling to do what is necessary to get the economy going again. He is a guy with one bullet in his gun — spending and he refuses to use any other methods of growth.
Obama’s Keynesian economics have turned him sour on free markets and betrayed him. I believe he is so obsessed with making liberal Keynesian economics work that he can’t even take an objective view of what is going on. If he could pass another spending bill he would, but the House won’t let him this time.
Instead of relaxing rules on corporations he passed Dodd-Frank, and let’s be honest there were problems with securities, and mortgages, etc. The free market is not perfect but that bill was way broader than addressing only the certain issues necessary. Same with Sarbanes-Oxley.
This week we heard that handouts was one of the best ways to boost the economy, but it simply isn’t true. It allows those that are hurting to drag on without hope of something better. It allows people to eat and that is good, but it douses desperateness and creativity. What we should be doing is trying to grow small and large businesses as that would create new wealth that does not currently exist rather than shifting the wealth we have back and forth.
We are in serious danger of a double-dip recession, and that is assuming we aren’t already enduring one. Yet still, there is no jobs plan. In almost 3 years the only “jobs” plan was the government stimulus spending bill.
Government stimulus spending created (1) temporary government jobs and (2) helped pay the salaries of union state and municipal jobs. That isn’t job creation and that is all we have seen. Obama is set to return in September with a plan for jobs but I don’t expect much because it will likely be a plan to spend. He has no other bullets in his gun.
Do we need to explore green tech? Yes. Do we need to build roads, bridges and infrastructure? Yes. We especially need a new electrical infrastructure that is more cost effective and less wasteful. But unfortunately we simply can’t afford it. If the government was going to do anything affirmatively to create new jobs the only intellectually honest option that it has is to cut defense spending AND welfare programs. If we cut these programs then we have money to spend on infrastructure. Dems always want to complain about how China is building infrastructure, bridges, nuclear facilities, etc. But China doesn’t have to pay for the social programs that bog us down with no return. One out of ten people who want a job cannot be denied one. Obama has to change something. If you want to do something you cut a lot of spending and you rededicate some of that spending to infrastructure jobs that are permanent.
Next, we have to ease environmental regulations. Nuclear facilities are extremely dangerous if not properly taken care of, but it takes decades to get one off of the ground because of govt regs. We have to streamline this stuff.
We have to allow states to relax minimum wage laws when necessary and under certain conditions. It is better to work for less than not at all.
The number one thing Obama should be doing to create jobs is to cut taxes on small businesses. Why should they be paying any taxes? New businesses shouldn’t have to pay payroll taxes, they shouldn’t have to pay sales taxes on inventory and equipment. We have to make it easy for people to take their ideas to the streets. Most small businesses will fail, but how many more people would try if they didn’t have to pay taxes for the first 5 years? We should be encouraging people to use their ideas and try. A fear of failure and government does not foster growth.
If we get the money out of people’s hands and bank accounts and into the economy, good things will happen. People with money will invest. But you can’t be afraid to help corporations and unfortunately Obama is afraid to help corporations. But, corporations, more than charitable groups or government or churches — help make people’s lives better and grow the economy. We can demonize them all day, but American corporations and business is the reason that are country has the benefit of the economy that it does. If Obama wants to win another term he is going to have to help business help America because spending just isn’t going to cut it.