The latest growth figures for the American economy show that the first quarter did not even reach a 2% growth rate and the rest of the year looks like it will come in at about 1%. In other words, we are in a "recovery" in name only. Five years after the start of the last recession, we still do not have as many jobs in the USA as we did at that time. To be clear, four years after the beginning of Obama's "recovery" we have still not gotten back just the jobs that were lost. People may have gotten used to the slow growth, but that does not make it good.
Let's be clear: right now, there is enough pent up demand for cars and homes alone to drive the economy forward quickly. If folks actually bought the cars that they need and the homes that they want, we would be seeing quarter after quarter of growth greater than 5%. There would be hundreds of thousands, indeed, millions of new jobs created just to meet the demand for all the things people did without during the recession and the five year non-recovery recovery. That demand has to be unleashed, however. People have to believe that things are truly getting better before they will spend their savings and take out mortgages and loans to buy big ticket items. but it just isn't happening.
None of this is the result of the usual stuff that gets talked about endlessly on the cable news. People are not holding back from buying a new home or car because the 2% payroll tax cut ended. Nor did the slight reduction in the growth of federal spending due to the sequester deter folks from that new home. The problem is that the economy in general is just so weak that people are very hesitant to undertake a big expenditure.
America needs to unleash the creative forces that pushed American commerce to the top of the world heap. We need to do two things to achieve this: 1) reduce the risk of investment and 2) increase the incentive provided by the ultimate reward. Folks who would open businesses or expand those already in existence need to know that the government will not step in to cause them problems if they expand. They need to know for certain what will come in the future from the feds. That is why Obama's recent decision to delay the implementation of Obamacare's employer mandate for a year is such a bad move. Aside from all the direct negatives of the employer mandate, Obama has injected more uncertainty into the business world. Will the mandate ever be enforced? Who knows. Maybe it is best to wait and see.
With regards to incentive increases, it would be best to fix the business taxes so that they are more rational and fair. There is no reason why Obama's friends at GE make five billion dollars but pay no taxes while the small business that makes $100,000 gets hit with taxes at the rate of 35%. All the special exceptions, loop holes, and the like in the business tax world should be junked and the extra tax proceeds should be used to reduce the rate of tax to something like 20%. That means that someone contemplating a new business expansion will know that they will get to keep 80% of what they earn instead of just 65%. That will mean more business and more growth. And we all know what that will lead to: more jobs!
Right now, president Obama does not seem to be paying any attention at all to the economy. Neither is Congress. America needs to tell them that it is time to wake up and pay attention to the important stuff. We don't need another discussion of global warming. Americans need jobs!
Let's be clear: right now, there is enough pent up demand for cars and homes alone to drive the economy forward quickly. If folks actually bought the cars that they need and the homes that they want, we would be seeing quarter after quarter of growth greater than 5%. There would be hundreds of thousands, indeed, millions of new jobs created just to meet the demand for all the things people did without during the recession and the five year non-recovery recovery. That demand has to be unleashed, however. People have to believe that things are truly getting better before they will spend their savings and take out mortgages and loans to buy big ticket items. but it just isn't happening.
None of this is the result of the usual stuff that gets talked about endlessly on the cable news. People are not holding back from buying a new home or car because the 2% payroll tax cut ended. Nor did the slight reduction in the growth of federal spending due to the sequester deter folks from that new home. The problem is that the economy in general is just so weak that people are very hesitant to undertake a big expenditure.
America needs to unleash the creative forces that pushed American commerce to the top of the world heap. We need to do two things to achieve this: 1) reduce the risk of investment and 2) increase the incentive provided by the ultimate reward. Folks who would open businesses or expand those already in existence need to know that the government will not step in to cause them problems if they expand. They need to know for certain what will come in the future from the feds. That is why Obama's recent decision to delay the implementation of Obamacare's employer mandate for a year is such a bad move. Aside from all the direct negatives of the employer mandate, Obama has injected more uncertainty into the business world. Will the mandate ever be enforced? Who knows. Maybe it is best to wait and see.
With regards to incentive increases, it would be best to fix the business taxes so that they are more rational and fair. There is no reason why Obama's friends at GE make five billion dollars but pay no taxes while the small business that makes $100,000 gets hit with taxes at the rate of 35%. All the special exceptions, loop holes, and the like in the business tax world should be junked and the extra tax proceeds should be used to reduce the rate of tax to something like 20%. That means that someone contemplating a new business expansion will know that they will get to keep 80% of what they earn instead of just 65%. That will mean more business and more growth. And we all know what that will lead to: more jobs!
Right now, president Obama does not seem to be paying any attention at all to the economy. Neither is Congress. America needs to tell them that it is time to wake up and pay attention to the important stuff. We don't need another discussion of global warming. Americans need jobs!
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