The Mystery of Job Creation


President Obama gave a speech today that basically stated that the US government would continue to spend money we don’t have to create jobs.  “We have to spend our way out of this recession,” was a quote from the speech today. 

Economist Thomas Sowell has said that asking a liberal where prices and wages come from is like asking a six-year old where babies come from.  Mr. Obama proves the point.

The president graciously offered to defer capital gains taxes for small business investors for one year.  Nice try, captain.  Most small business owners don’t pay capital gains taxes, because their income from their business is taxed as personal income and paid at their personal tax rate.  So, the capital gains suspension does nothing to help small business people.  What small business owners do see is the Bush tax cuts expiring (5% increase), and Nancy Pelosi proposing a 5.4% increase on the “rich,” many of whom are small business owners.  Then there’s the “war tax.”  Small businesses are looking at their REAL taxes going up by at least 10.4% next year.  This doesn’t count the increase of the cost of doing business should the healthcare obamanation (misspelled on purpose.  think about it.) passes. 

President Obama has not ever run a business, as I have lamented repeatedly in the pages of this blog.  He does not  understand where wages and prices come from.  The economy is in a recession, regardless of what the president says when his teleprompter tells him to.  No job creation means no recovery.  No real recovery anyway.  The Obama administration is cooking the books on these numbers in a way that would make Ken Lay blush.  If he wasn’t dead. 

Mr. Obama seems to think that no jobs can be created if the government doesn’t create jobs directly.  Of course!  Government is the answer!  What am I thinking? 

I’m thinking that the private sector has done a pretty good job of providing jobs for the past two hundred years.  It has gotten progressively difficult over the past 50 years or so, thanks to progressives.  More and more taxes, more and more government meddling in business, and now, more and more companies being taken over and run by the federal government.  State and local governments are taking federal money, and the strings attached to it, further hampering local economies from developing like they should, as partners with the private sector. 

Job creation is not a mystery.  Fair competition between private companies fosters lower prices and higher wages for employees.  Lower taxes encourages companies to expand, invest, and hire more people.  Less regulation lowers the cost of doing business, again encouraging expansion of business, including the hiring of more workers.  Lower taxes also allows our products to be more competitive with international products that are built in countries where the government doesn’t have a stranglehold on businesses.  The United States is the only industrialized nation to not lower its coporate tax rate in the last 15 years.  Our corporate tax rate is 39%.  And with statists (aka liberals) in charge, this rate will probably increase.  This is why many companies pull up stakes and move overseas.  Guess what they take with them?  Right!  Jobs.  It’s a miserable day when Budweiser, an all American company since it was started in the 1800’s, has been sold to a Belgian company. 

Let’s recap:  our president wants to spend  money to “create or save” jobs.  There will be another stimulus plan.  And lower tax rates have not even been discussed in any real manner.  It’s been proven throughout our history that tax cuts increase revenue to the government and stimulate company growth.  This stimulates job growth.  It also creates a more competitive environment where our companies can actually sell their products and make (gasp!) profits. 

How IS that “hope and change” working for you?

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