To paraphrase a well known quote: “A recession is when your neighbor loses his job. A depression is when you lose yours.” Two of my friends are out of work and it seems to be a long term deal. Both are highly qualified and experienced. I have personally lost a great night job I held for years and have not been called in to work since August, 2008. How are you and your acquaintances doing these days?
Opportunity in America starts with a job. Without one, there is no security, no earnings or savings, and no satisfaction and self-esteem of contributing to ones future or society. Official unemployment stands at 9.5% and if those who are under employed are added in, it becomes over 17%. Here is a short clip about how onerous regulations hurt the economy. It only touches on a couple of the several items mentioned below:
Do we want our jobs back? – YES! OK, just how can this goal be accomplished?
Business creates new jobs when it expands. Most large firms are sitting on their cash because they are uncertain of the future. In fact – several big companies that have announced expansion plans have been savaged by the stock market recently instead of rewarded. Investors are not confident that growing business is a smart move at this time.
Small business is fighting the combined headwinds of low demand, burgeoning new regulations, and great difficulty obtaining financing. This sector of the economy which traditionally creates the most jobs is stalled.
The Obama Administration has passed or is pushing legislation that has emasculated businesses large and small, putting great fear into owners and investors and hampering economic recovery. If we want our jobs back, these monstrous legislative overreaches must be rolled back. Here they are:
$867 Billion Stimulus: This program borrows nearly a Trillion Dollars from China and others against the future earnings of all Americans. It was promised as a method to initiate “shovel ready” infrastructure work. Instead most has been spent on the state level preserving government jobs.
Health Care: This massive takeover of 1/6 of the entire economy has created unintended consequences of huge proportions. It threatens to crush small businesses’ health plans and drive workers into the government system. The true long term costs to both business and individuals cannot be accurately calculated, and the implied costs were buried deep in the overall effort to pass the Bill.
Financial regulation: The Dodd / Frank legislation supposedly regulates financial practices while ignoring completely the malfeasance at Fannie Mae and Freddie Mac that contributed so greatly to the 2008 meltdown. Draconian rules and regulations will trickle down to the smallest mom & pop business and stifle initiative and productivity with reams of reporting requirements, paperwork, and red tape.
Cap & Trade legislation: Currently passed in the House and stalled in the Senate, whispers have it that a lame duck session of congress after the November election may pass it in the Senate anyway. This myopic and hysterical “solution” to a problem that has not been proven as fact would saddle business with huge energy cost increases. It would drive literally millions of American jobs overseas in a pen stroke.
Expiration of the Bush Tax Cuts: John F. Kennedy, Ronald Reagan, and George W. Bush all lowered taxes in the face of a recession. All three saw a spurt in economic growth and jobs as a result. The Obama Administration intends to raise taxes at the end of 2010 by allowing the current cuts to expire. Raising taxes punishes investment, expansion, success, and hiring. This scheme is a recipe for prolonging the worst recession in 75 years.
The Obama Administration has caused more damage to the US economy in 18 months than Jimmy Carter managed in 4 years. The only way to have a prayer of turning things around for the better is to change Congress this year so opponents can block funding and implementation of some of the more destructive aspects of the Obama agenda.
For you, your friends, your neighbors, and your children: THIS IS THE MOST IMPORTANT ELECTION IN OUR LIFETIMES.