You may be please to find out that with over 9 percent unemployment (and that’s a low accounting of the real unemployment numbers), a slowing economy, inflation soaring, and greater unrest about the Obama Administration they have decided to shift their focus to the private sector to create jobs after having added over 140,000 federal jobs. Obama’s chief economist, Austan Goolsbee, appeared on CNN and made the announcement
“Corporations have become profitable again. What we need to do now is get the private sector stood up.”
Many in the private sector may want a clarification on the “stood up” line as this administration has done much to demonize the private sector and may feel that “against the wall” would be an appropriate addition. As you might expect from a BIG GOVERNMENT administration the “focus” is all about improving job growth through tax incentives and investment subsidies. Let me translate that for you…we’ll use tax dollars to decide which companies we want to succeed by giving them an advantage over the other companies.
I am not surprised that politicians, and especially this administration would want to control the private sector, but they ignore the simple solution. They know the simple solution, yet they ignore it. All that they have to do to jump-start the economy is to first GET OUT OF THE WAY! That would go a long way toward removing the uncertainty in the economy that has many of the profitable companies waiting to see what the future of government will bring. Why risk capital right now? If Obama is re-elected (it is painful to even acknowledge that possibility) they can expect more “shuns” from his administration…regulaSHUN, demonizaSHUN, taxaSHUN, intruSHUN, and investigaSHUN.
Here are a few ideas that do not cost the taxpayers anything (or at least not much) that will help boost the economy:
- Repeal Obamacare: The vast number of waiver requests and approvals should be an indication that this is a bloated piece of legislation.
- Reign in the EPA: The road blocks being constructed are monumental for companies yet they achieve only nominal improvements to the environment. The best thing for a clean environment is a prosperous country which can afford higher standards.
- Drill Baby Drill: Cheap energy will power growth in America and it’s that simple. We should embrace all energy sources; coal, gas, oil, nuclear, wind, solar, water, etc. We should embrace them, not subsidize any of them.
- Stop the Presses: STOP PRINTING MONEY!
- Tort Reform: Put limits on punitive damages (i.e. those damages far in excess of actual damages and are solely meant to punish) so that companies can appropriately weigh risk. This will help doctors also by lowering their liability insurance.
- Repeal Dodd/Frank: This farce of a banking bill will do as much to improve banking as Obamacare does to improve health care. It should be scrapped and start over. By the way throwing both Barney Frank and Chris Dodd in the slammer for a few years might make the rest of the politicians think twice before screwing us.
- Embrace Wealth: Rather than demonize the wealthy lets embrace them for the wealth that they create and the jobs they bring. Are all wealthy people nice? Certainly not, but even Scrooge hired Little Timmy’s father. STOP THE CLASS WARFARE.
- Subsidies: Either subsidize every industry or none of the industries (I prefer the latter). This will take power away from Washington and allow local advancements. There will be a lot of screaming, but adults do have to let their kids cry once in a while…at least good parents do.
- Tax Reform: And I don’t mean adding another 5,000 pages to the tax code. Make the tax code so easy that even Charlie Rangel can understand it. There are some folks who are pushing the Fair Tax and we should give that a try for a few decades. The IRS agents can work for other agencies seeking out those who defraud the government.
- Tenth Amendment: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
- Prisoner Exchange: The Republicans will get rid of John Boehner and Mitch McConnell if the Democrats will get rid of Nancy Pelosi and Harry Reid.
While Obama’s focus may have shifted, his tactics have not. More government spending through subsidies and tax incentives are just more of the same unsuccessful policies. It is silly to try to sell this strategy as a new focus. All that you have to do is look at news stories from across the country where states and municipalities gave huge tax incentives for industry to move in only to find that once the incentives expired the companies moved.