Why We Are Not In An Economic Recovery
The war between private enterprise and the government has reached a fever pitch under the Obama administration. The idea of creating a strong American Economy with a “new foundation” has become a staple in the President’s statements regarding economic recovery.
Our President and his fellow statists in Congress have met this economic downturn with Keynesian, big government interventions. From a stimulus, which had to take or borrow money from one group of taxpayers and give it to another, to a health care law that this week bore the fruit of a public hearing for companies who have dared to calculate the cost differential between maintaining certain benefits or paying a fine (tax); the federal government is using its full power (defined and implied) to regulate, intimidate and control businesses. These events are not anomalies: The extension of unemployment benefits, the take-over of student loans and the demonization of any would be competitor to government have all sent the message: If you dare to compete with the Federal Government you will be punished. These actions have, and continue to destroy investment, innovation and subsequently job creation. A recent LA Times piece detailed the recessions of Reagan and Obama. The key difference: The current (Obama’s) recession job losses are actually just below those of President Reagan’s. However, it is in the measure of job creation where Reagan’s record dwarfs Obama’s anemic results.
All the talk of GDP growth and green jobs is just hot air. Without an environment where productivity through free enterprise is incentivized; you end up with consistent double digit unemployment and government picking the chosen few who are able to succeed.
One Comment
Crane, listeners, I have been in business for 30 years in arguably one of the most labor intensive of industries, food service. I’m just a single unit independent owner with an insatiable entrepreneurial spirit, something required to do and sacrifice whatever it takes to survive when highly organized and leveraged franchises are trying to make you “go away” so they can have your market share. Hey, I don’t mind that! This is a fight “I” choose. I don’t mind being David against the goliaths, I identify with David anyway, I have always had that kind of child like heart, AND have often succumb to my humanity and I make lots of BIG mistakes. But I digress…
I wanted to point out something I have not heard anyone mention, but, regarding the way unemployment reporting has been done by people who are unemployed? Those persons who have “become unemployed” are coached by people at the unemployment office to list “every job” they worked, even if they quit, stopped showing up for work, were fired for stealing, etc.. It does not matter if the person “knows” that they are not “actually eligible” for unemployment compensation, they are coached to list those employers! What occurs “in Michigan at least” is that the employer is REQUIRED to dispute the claim, and if many are like me, they don’t have to TIME to DEAL with the notifications that these people are going to draw off the employers unemployment fund! It is another hassle, at least for me. (Luckey I have not had a lot of turnover of staff lately) I knew right off the bat when this reporting policy changed that it was designed to be another way to siphon money off funds that were designed for people that actually deserved it. For people that were actually “laid off” or let go unjustly.
You know, I just folded my arms and shook my head and kept plowing forward when I was unable to respond fast enough to notifications or take the time to dispute these unjust claims.
I wonder how many other small business owners who are as busy as me see their unemployment % costs increase because they are so busy, working very unreasonable hours to be able to afford to pay their employees AND survive in this economy do the same?
Personally, I ended up resolving this within my mind as, well, I hate that these draws are unjust because a thief or someone who just “didn’t show up for work anymore” is drawing, but, oh well, our economy is suffering so much, I guess they (The Michigan government, as I don’t know where else they do this) needs to put money into peoples hands and they saw that there was a pool of money they could “tap into” and I just had to resolve it as “well, at least I hope helps support our floundering economy here in Michigan”..
SIGHS…now, as it seems tome, my president has gone crazy with his GIANT USA credit card and charged up all this irresponsible debt to mine and other citizens balance sheet, to solve a problem that actually requires people creating and working and GENERATING something for their income. (You know, how if your finances were in trouble you would have to either work harder and spend less, or, get creative and invent a new source of income, provide a service, get another job or different job or manufacture something, etc.
I know that if I did what our government is doing maxed out my cards and spent more than I could earn, the bills would come due and they would foreclose on my home and business…
At this rate, will the White House soon be available, yes, I am going to say it, “for sale” at a foreclosure bargain rate on some world market?
Lastly, I must concede this; the thought of being President of the United States terrifies me. I don’t want to be that guy sitting behind that desk with so much of the fate of Our Nation in my hands…but when I see the direction we are going, and that it that defies much common sense, I actually get afraid time to time that someone is going to call me to the helm of these kinds of greater responsibilities I truly wish to avoid.