Obama’s Jobs Plan Will Fail

If it passes, Obama’s so-called jobs plan has no chance of working.  He seems to think businesses and consumers are going to make long term hiring and spending commitments based on short term incentives.

If you run a business and reach the very reasonable conclusion that the tax and regulatory climate is going to be ugly for the foreseeable future, do you really think a small tax break is going to entice you to commit to a new employee?  If you are a consumer and you think your job is unsteady or your income growth over the next few years is limited or that, even if your income grows, you are going to be nailed on taxes, are you likely to start spending?

We don’t need a “jobs” program, we need a “get government out of the way” program.  When business and consumers are confident that government won’t punish success by taxation or prevent success to begin with by regulation, the economy will prosper.

2 Responses

  1. They always forget…we capitalists always have the option to take our ball and go home. Capital is like water; it flows to the point of greatest return. Taxes and regulations and administrative requirements erode at that profit. And if there is no profit to be had, or insufficient profit for a given level if risk, then there is no investment and no business.

    Oh, and risk in business is defined as uncertainty. Do you think that this administration has increased or decreased uncertainty?

  2. The problem is that too many people on the left have never learned this at all. It is simply foreign to their worldview. To them, motivations define good policy, not results.

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