Thursday, 15 September 2011 11:51
Obama’s Big Government is The Problem, Stupid
Written by 

Economy“It’s the Economy, Stupid!”  Remember that slogan during the Presidential election of 1992?   James Carville coined Bill Clinton’s campaign slogan and won the race.  It bears repeating again.


President Obama continually displays his vulnerability because he lacks an understanding about business.  His speech the other night highlighted this shortcoming once again.

Government does not create jobs, other than government jobs.  Government can set up special interest groups that benefit from programs.  But more likely than not, these are not “real jobs” because as soon as the subsidy disappears…so to do the jobs.  They are merely short-term expensive government “stimulus” programs which serve to undermine the economy. (Note: Evergreen Solar …bankrupt: stimulus cost $485.6 million & Solydra Solar… bankrupt: stimulus cost $535 million)


The best thing government can do is to step back, impose only necessary regulations, enforce those regulations, reduce tax burdens, and turn the American people lose to do what they do best… invent and create meaningful occupations with real futures.


America is dealing in an international marketplace for raw materials, labor, and government regulations.  If a government makes the environment non-conducive for businesses to operate, businesses merely walk out and move operations to a more conducive environment. Jobs left America for China.

Now they are leaving China for Indonesia and Sri Lanka. 

American businessmen today face higher taxes than in those nations with a growing economy.  To reference our nation’s tax base as being less than Europe’s is laughable.  The European economy is collapsing because of government interference and taxes.  Copying them is the cause of our present dismal situation.  Look at Greece, France, Ireland, Italy, and England.  Do Americans really want to follow THAT lead?


The United States needs to look toward those nations experiencing economic growth to find a pattern for success.  That means cutting off the fetters and allowing business to flourish.


American businesses face a conglomeration of ever changing regulations: NLRB, USDA, EPA, DEQ, IRS, OSHA…just to mention a few in a whole alphabet soup of bureaucrats who hinder production and expansion.   That does not even take into account the new crippling regulations on financial institutions. Wonder why houses are not selling?  Ask a realtor.


Add to that the plethora of other mandates imposed by federal, state and local governments.  Employers must pay: Medicare, to cover worker’s health when they get old; Workman’s Compensation, to cover workers health when they get hurt on the job; And now ObamaCare to cover worker’s health when they get sick off the job.  How many times must an employer cover a worker’s health?????  Why is that even a business responsibility?  It’s not among our competitors.


Now Obama wants to raise taxes on corporate profits…once again, displaying his total lack of knowledge about business.  Corporate profits are already taxed when the dividends are distributed to stockholders.  To tax them at the corporate level taxes the profits twice.  Does he not comprehend that?  This is economics 101. 


As for those screaming in the streets demanding that these corporations be taxed, have they not considered that their own retirement program is likely funded by these same business “profits” they want to tax?  Stock dividends held in their retirement programs and 401Ks contribute to their retirement.  Do they really want those benefits taxed?  Or, are they too dense to understand what they are asking for?


What made America great was the unbridled ability for people to open businesses, employ people, and create wealth for themselves and their communities. Wealth is good! Government, like a leech, merely sucks the blood out of the economy and spends it on programs that benefit the election of politicians, not the public good or the national economy.


Government does have a role.  But that role is limited to guaranteeing that everyone plays by a set of reasonable rules designed to promote fair business and labor practices.  Beyond that Government interference in the economy serves to generate deficits, decrease competition, reward incompetency, and foster the exit of business that have the means to leave.


Government is not the solution…government is the problem!  And big government is a big problem!

by Ron Chapman

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