Brushfire of Freedom
The Conservative Cowboy
Today our president is going to meet with advisors and come up with a plan to help the labor pool and the high unemployment rate that is plaguing this country. Personally I find this very amusing as many of the programs that our president put into place, is supporting, of is pushing through the congress are actually creating roadblocks for recovery. Now I know everyone has their own opinion on how to fix the economy but I have one pretty strong friend on my side, Logic.
Now I don’t care if the unemployment rate is 10 percent or 50 percent, there are a few key factors that cause these rates to be high. Businesses costs are too high, demand is low, or we have a bunch of under qualified people to fill positions. I could be wrong here but I think I just illustrated the three reasons why unemployment happens. For you people who think that outsourcing causes unemployment, you are correct in the very short term but long term it actually helps the unemployment rate, but we can get into that another time.
So try to stay with me here as I put all of these pieces together for you. Business costs are too high, well the US has the second highest corporate tax rate in the world, and now they are trying to raise taxes on individuals making $250,000+ per year. Well those people that we are increasing taxes on are our small and mid size business owners, which might surprise you employ the majority of our workforce. So to sum up this piece the tax increase that Obama and his goons in Washington will implement will raise the cost of doing business, at all levels and that will trickle down to every facet of the economy. For those of you who don’t understand please see Supply-Side economics which we have to thank for the booming economy of the 90’s. What happens at the top will trickle down, and our administration wants to raise the cost at the top, and who do you think will pay for that increase? The business? No. We the people will pay for it either with lay-offs or increasing prices, can you say inflation? Why do you think the Fed is keeping the interest rates so low we have been walking dangerously close to that line for about a year, well a year on January 20th, 2010.
So this brings us to the next point demand is low, well that is what happens when you have people out of work, that are still getting paid. I just read something in the news that the Federal Government wants to spend more taxpayer dollars on extending unemployment benefits to people that have already been on unemployment for 18 months. So where does this money come from, increasing the deficit which will be paid for once again by the business owners, which will in turn have to cut costs more and lay more workers off. Can you see the insanity? I hope that I am not the only one.
And now to the final cause of unemployment, and that is the workers are under qualified. Now in our current case we have some people working in jobs where they are over qualified, so please don’t miss the meaning here. In this country we have been moving the majority of our “blue collar” jobs overseas (for the few liberals that might be reading that is a manufacturing job). This means that our economy is switching to more “white collar” service jobs. Well that means that most of our “blue collar” workers are under qualified for the future.
So until the government provides incentives for small business owners to grow (lower taxes) and big businesses to grow (lower taxes) then our unemployment will remain high. Keep in mind the in previous recessions many of the people who were laid off were forced to become entrepreneurs, this is what I like to call forced innovation, the problem today is that there is no incentive to be successful because the Federal Government will punish you and give your money to someone who has not earned it. The unemployment in this country will not go away until our government realizes that their taxes are crippling the people that provide jobs.
I don’t think that it can get any more simple than that!
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