As expected, President Obama's ideas for stimulating the economy and jobs are wrong. Equally wrong is the willingness of congressional leaders to work on legislation that build on Obama's wrongheaded ideas. Why? Because few in Washington know anything about jobs or where they come from. Fewer care to know.
If Congress and the President (and his teleprompter) truly want to do anything positive about jobs and the economy, they must think like businessmen and employers -- not like statists, regulators, central planners and attorneys. Those who cannot or will not think like businessmen and employers (or at least respect them and their needs) must be replaced!
The nation desperately needs legislation to:
? Permanently eliminate the minimum wage. This will make it feasible for businesses to hire workers whose productivity isn't worth paying the minimum wage.
? Permanently eliminate the alphabet soup of other regulations and agencies that increase the cost of labor and production such as the Clean Air Interstate Rule, Davis–Bacon Act, Department of Agriculture, Department of Commerce, Department of Energy, Department of Labor, Department of Transportation, Economic Development Administration, Energy Policy Conservation Act, Environmental Protection Agency, Food and Drug Administration, Occupational Safety and Health Administration, Sarbanes-Oxley Act, Small Business Administration, etc. None of these have any authority in the Constitution. All these regulations and agencies impede prosperity. Their roles can be better handled at the state and local level. A permanent and substantial cut in the size, power, and cost of government will facilitate a permanent and substantial cut in taxes. With more money left in their paychecks, Americans will spend more resulting in an immediate demand for more business productivity (jobs).
? Permanently eliminate the corporate income tax. This will enable US businesses to better compete with imported goods for foreign producers who do not pay the US corporate income tax. Note that corporations don't really pay taxes anyway -- they simply add that expense to the product or service they sell so that the consumer ultimately pays.
? Permanently eliminate all subsidies and focused tax breaks. Subsidies only push inefficient and unwise businesses and technologies into the marketplace. Allowing a free market to pick winners and losers is always better than central planning.
? Permanently stop bailing out businesses, nations, and individuals that fail. This only encourages weakness, poor leadership, and failure.
? Permanently close the borders and shores to the invasion of illegal immigrants. Make it extremely difficult for illegals to find work. Make it impossible for them to find any taxpayer-funded aid such as education, health care, etc. This will free up the jobs that Americans allegedly won't do.
? Permanently eliminate incentives for Americans to not work such as extended unemployment compensation, food stamps, housing assistance, etc. These programs not only violate the Constitution, they violate human dignity and remove the incentive to do the jobs Americans allegedly won't do.
? Permanently abandon the student-loan scandal that only enslaves students with unmanageable debt. Instead, offer 100% tax credits for education from Kindergarten through graduate school and trade schools. This will make it easier for Americans to prepare for the future.
? Permanently abandon taxation (including taxes on capital gains) on all investments whether they be savings accounts, stocks, real estate, etc. Elimination of the ongoing uncertainty of tax law will allow Americans to plan for the future -- especially business growth and job creation.
The Phoenix Center reports that
Even a small 5% reduction in the regulatory budget (about $2.8 billion) will result in about $75 billion in expanded private-sector GDP each year, with an increase in employment by 1.2 million jobs annually. On average, eliminating the job of a single regulator grows the American economy by $6.2 million and nearly 100 private sector jobs annually. Conversely, each million dollar increase in the regulatory budget costs the economy 420 private sector jobs.
According to the US Bureau of Labor Statistics, government employs 8% of workers in the United States. -- and many of those bureaucrats are paidtwice what their counterparts are paid in the private sector. That is far too much government at far to great a cost. This is an unconscionable burden on the private sector.
Congress' escalating penchant for central planing and social engineering over the past 100 years has come to a head. Businessmen are unwilling to invest in the future because nobody in the private sector can forecast what congressmen and bureaucrats will do next to make life even more difficult for businesses and consumers. Businessmen need a stable, predictable, and favorable regulatory and tax environment if they are to thrive. Instead, Congress and the bureaucracies it has created are hostile to the free market. No amount of government spending (AKA "stimulus") can possibly fix that. The only fix is for Congress and bureaucrats to get out of the way! Now!