Friday, July 30, 2010

It's The Economy Stupid

Jobs are the driving factor that improves the economy. The more jobs, the more employed. The more employed, the more people with available money to spend. The more employed, the more people paying taxes. Our system of government and the general economy relies on jobs.

Why is it the average liberal doesn't get this? They are constantly pushing to destroy jobs and reduce personal wealth. The United States became the driver of the worlds economy by doing the exact opposite. If we want to fix the current problem and get America back to work then we need to focus on job creation.

Let me point to some statements made by Chris Edwards, CATO Institute economist and director of tax policy studies.
"The Obama administration has done nothing, nothing in my view to benefit the economy in the short, or the long run," said Edwards.

"Everything they're doing is anti-business, anti-enterprise, anti-venture capital, anti-investment. It's anti-small business and anti-big business. It's just astounding in my view."

Edwards says the big jobs killer weighing down the economy right now is uncertainty over what will happen next.

"Businesses large and small frankly they're just uncertain, they're fearful about what is coming in the future, and they're holding cash… they're not investing," he says.

Moreover, Edwards says, there is no assurance that when U.S. businesses do finally begin expanding again, that they will do so in the United States. In today's global economy, he said, they can flee to more business-friendly locations — something that pro-stimulus Keynesian economists often overlook, according to Edwards.

"I think our tax and regulatory policies are scaring U.S. and foreign multi-nationals away from investing in America," Edwards says.

I recently spoke to a businessman I respect who suggested, allowing for full depreciation of any capital expense up to the percentage that is made in the U.S. in the first year after implementation. This would be a boon to American business and a huge incentive to expansion instead of contraction of business. Programs such as these would draw business to America instead of current policies that suggest they move it elsewhere and take the jobs with them.

We need policies that keep business here at home. We also need some assurance that the goal posts aren't going to move after we make the investment. Right now the goal posts are constantly moving as the Obama administration constantly changes the business climate in America. Until things settle, we are in for a long and bumpy ride.

Quote above from here.

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