Subscribe by RSS
Thursday, during the Jobs Summit, there was a report that the President had blamed the jobs situation on businesses that, in pursuit of profitability, refused to hire new workers resulting in fewer people generating more productivity. I refrained from jumping out of my chair as I HAD to assume someone had gotten it wrong or out of context. But then in Allentown, the President repeated the assertion. Damn it…..busted.
Finally, I understand the reason for the jobless numbers; it’s my fault as a business owner. It’s not the uncertainty of what my costs for Health Care will look like or massive deficits. It’s not credit unavailability, or the prospect of new taxes and fees. It’s not the possibility of an 800% increase in unemployment compensation costs because the state trust fund is down to zero. It’s not the plummeting dollar or reductions in discretionary spending. It’s not local and state governments looking for any opportunity to raise taxes to deal with their own budget deficits. It’s not the potential of Card Check legislation turning my small business into a union house, or Cap & Trade doubling energy bills. It’s me! It’s my fault!
Confession being good for the soul, Mr. President I’m stepping up. My business did, in fact, end up doing more with less. We had to let someone go, we delayed seasonal hiring, salaried staff had to cover jobs and shifts that used to be handled by hourly employees. Yes, yes, it’s true, it’s all true. I’m sorry!
But Mr. President, I had to do it! You see, if I had not done those things and the business failed, well a lot more people would have been out of a job. All of those taxes I pay would have dried up and the 200 clients I represent would have been out in the cold.
I swear Mr. President It wasn’t about profits, it was about survival. I’m sure someone on your economic team mentioned that profits are, you know, kind of necessary if you want to get on with that whole survival thing. I assumed, now that you’re running GM, the profit / survival equation would have been somewhat clarified.
I did what I could. I went to my local banks to see about short term credit lines and, as you know, they’re really not doing that anymore, something about regulatory demands. I checked with the Small Business Association, no joy there either.
So in the spirit of confession, Mr. President you should know that not only did I cut back on jobs, I cut back on inventory levels as well. Guilty as charged!
I’m sorry, If only I had known.
Leave a comment »Visit the You Decide Politics Store »
Landreaux you are no obamaite.
Are you saying appearance is not reality ? We have President that speaks from both sides of his mouth ? Speaks with fork tongue ? Does he belong in La-La land ? Should Secret Service purchase a straight jacket ? Commit obama and his family to Russia as peasants and let them live happily ever after ?
I remember when White House was King Arthur’s Camelot. I was young but have read about John F.. Never in a million years would John F. adopt obama-economics. Is why John’s name is never spoken today. John believes some wars must be fought.
John I believe would relate to your stance. Dismiss obama’s ideas as irresponsible stupidity. I believe our polls (name any) show public sees obama’s asinine remarks as attempt to bring in class envy and distraction and disagree with him. I call obama worse racist I have ever seen. Thank goodness our citizens sees the truth. See things more in the eyes of Landreaux.
Landreaux I ask that you read my most favored link. Author has written many articles I think would interest you. I hold to his belief, his writings as my economic bible. In him I do trust:
August 13, 2003
“The Historical Lessons of Lower Tax Rates “
by Daniel J. Mitchell, Ph.D.
WebMemo #327
“There is a distinct pattern throughout American history: When tax rates are reduced, the economy’s growth rate improves and living standards increase. Good tax policy has a number of interesting side effects. For instance, history tells us that tax revenues grow and “rich” taxpayers pay more tax when marginal tax rates are slashed. This means lower income citizens bear a lower share of the tax burden – a consequence that should lead class-warfare politicians to support lower tax rates.”
“The Kennedy tax cuts”
“President Hoover dramatically increased tax rates in the 1930s and President Roosevelt compounded the damage by pushing marginal tax rates to more than 90 percent. Recognizing that high tax rates were hindering the economy, President Kennedy proposed across-the-board tax rate reductions that reduced the top tax rate from more than 90 percent down to 70 percent. What happened? Tax revenues climbed from $94 billion in 1961 to $153 billion in 1968, an increase of 62 percent (33 percent after adjusting for inflation).”
“According to President John F. Kennedy:”
“Our true choice is not between tax reduction, on the one hand, and the avoidance of large Federal deficits on the other. It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget just as it will never produce enough jobs or enough profits… In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.”
“The Kennedy tax cuts”
“Just as happened in the 1920s, the share of the income tax burden borne by the rich increased following the tax cuts. Tax collections from those making over $50,000 per year climbed by 57 percent between 1963 and 1966, while tax collections from those earning below $50,000 rose 11 percent. As a result, the rich saw their portion of the income tax burden climb from 11.6 percent to 15.1 percent.”
“Harmful Spending & Complexity”
“Lower tax rates are important, but they are not the only critical issue. Both the level of government spending and where that money goes are very important. And even when looking only at tax policy, tax rates are just one piece of the puzzle. If certain types of income are subject to multiple layers of tax, as occurs in the current system, that problem cannot be solved by low rates. Similarly, a tax system with needless levels of complexity will impose heavy costs on the productive sector of the economy.”
http://www.heritage.org/r...../wm327.cfm
There are longer and shorter versions of this. Graphs and footnotes. More material. Anything that might be of interest to you.
Landreaux you have brought out many of obama’s toxic measure to businesses. Why companies are in fear of hiring and expanding. Our government’s actions are not conducive for job creation.
I believe I saw where America has second highest corporate taxes in world.
I believe good home for jobs in America would be a near opposite shift of obama’s actions.
Obama, at least do no more. America can recover.
My 2 cents…
I work for Hewlett Packard and I can tell you that although we pulled a bigger market share and more profits than expected Mark Herd has announced that he is still continuing with his scheduled job restructuring or cuts.
I do think the president is a right and wrong. The truth is that most corporations and business hire based on projections. I would say Small businesses do this to a lesser degree as they tend to run tighter budgets but it is still a part.
So when the economy started a down turn, all the accountants started making projections and CEO started reducing costs based on their idea of how much they “thought” or could “educationally guess” and because the economy is a self fulfilling prophecy it helps tip the scales even more toward an economic downturn.
That said, the issue is what do these companies do if their projections are wrong? Do they stop there scheduled layoffs? or layoff and continue with better profit margins and use the “possible” economy as an excuse.
Small business is slightly a horse of a different color. When you only employ 8 people decisions are made more carefully because losing 1 person is an eighth of your work force and dramatically effects productivity and effectiveness.
I take what Obama said as a shot at large employers who I know and believe are making cuts regardless if their numbers are not as bad as they predicted. This is something no one but these companies can control.
Gentlemen, gentlemen,
You’ve heard of tounge in cheek!
It’s not an issue of big vs. small business and how they plan it’s about a fundamental misunderstanding or a refusal to understand what role business plays and how business operates. It’s about, in light of all the job killing policies the administration has put in place or is trying to put in place, he manages to blame business for the problems.
It’s about the abject refusal to recognize what role governmental policy plays in the economy and the nearly 100% occurance of unintended consequences. It’s about that fact that business experienced senior staff in this administration represents the lowerst percentage of business experienced staff in HISTORY!!!!!
We can’t all work for the government, at least I don’t think we can.
“I am not responsible for the flood said the rain drop to another”…
To ignore that businesses can be as fickle as the wind is an understatement. The primary function of a business is to provide a product or service for the market and profit is primarily for growth and capital.
I think it is fair to say companies are not hiring like expected or in respect to their means. Rightfully and wrongfully most are playing it safe until they feel more secure about the market. This is normal considering the circumstances.
I went back and read the transcript from the Allentown speech and I believe this section is the part you are referring to.
I don’t see the controversy??? Says specifically, “Instead of hiring, many are simply asking their employees to work more hours, or they’re adding temporary help. History tells us this is usually what happens with recessions – even as the economy grows, it takes time for jobs to follow.”.
This doesn’t come across as an excuse but I guess we all hear what we want to. It is a statement of fact like describing the weather. When it is raining outside we say it is raining… this doesn’t mean it will always be raining or that I am blaming the rain or that I don’t understand why it rains.
Claiming that companies and business are not hiring but instead working harder and with less is a fact as you, Landreaux, said your company is doing.
I don’t see how anyone can draw a line between this statement the “refusal to understand what role business plays”. If anything he is agreeing with you…”History tells us this is usually what happens with recessions – even as the economy grows, it takes time for jobs to follow”
I think it might be time to take a step back and make sure you aren’t just hearing what you want to hear. We are all guilty of this.
Landreaux
I understood your point from the begining.
With the biggest tax rate increase hanging over businesses head, not likely they will hire unless absolutely necessary. Nornmally labor slashing uses atternatives. Liverpoole with HP pointed out on CNBC today. Said 2 point improvement in software can save 30 hours in some companies.
Companies are on hold.