If you understand where jobs come from, then you would be waving signs with the TEA Party.
Jobs exist because the employer believes they can make more money by hiring the employee. That’s all there is to it. The money I’m talking about is profit, the stuff left over after you’ve paid all your expenses.
The current economic climate simply hasn’t convinced employers that it’s profitable to hire more people. Let me describe the problems.
First, there’s the obvious: Taxes. When you take from the rich and give to the poor, the only thing you really do is convince the rich they shouldn’t bother in the first place. Why sacrifice money on risky ventures, when the profits will get consumed by taxes anyway? Today, the US federal income tax rate is the highest corporate tax rate in the world. That’s why people are not investing their money in America.
Second, there’s the less obvious: Over regulation. Regulations are an important part of our economy and system of government. That’s why we formed a government in the first place. However, the regulations we live under today are unconstitutional and draconian. There is no sign of things getting better, even with Republicans running the house and Democrats running the senate and White House. In fact, thanks to Obamacare and the EPA decision to regulate CO2 without congressional mandate, things are going to get a lot worse. As a country, we need to return to a system of local regulation. Let localities duke it out and figure out the best way to balance economic interests with environmental interests, rather than allowing the federal government to make blanket declarations and force all to submit to their interpretation of the way the world should be.
Third, and even less obvious, is the national debt. As of right now, tax dollars are flowing through the federal budget into the pockets of seniors and the disabled through the entitlement programs. Over time, it will get much, much worse. America is faced with a hard choice: Do we cut off those receiving entitlements today, and give them a soft landing, or do we cut them off tomorrow with a national bankruptcy? At the same time, precious capital is being consumed by the US government, capital that would otherwise flow to more risky private enterprise, starving private enterprise of the cash they need.
Fourth, there’s the attitude on behalf of the Democrats, and especially the democrat in the White House, that they simply don’t care for business and the economy, and are only concerned with expanding the role of government in our lives. Those whose investments are paying off are brutalized in the public square, and those who are trying to invest today are ridiculed and belittled.
Why would any company take a risky bet in this economy? Why would anyone invest today for profit ten years from now?