| Allow business to do the heavy lifting |
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| Written by Rob Peecher | ||||||
| Thursday, 04 February 2010 | ||||||
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It is a smaller version of the $787 billion stimulus plan passed a year ago.
This week, you might have heard all the talk about President Obama pressing the Senate to pass a “jobs bill.” With unemployment around 10 percent (until you toss in those who are under-employed or have stopped looking for work, then it’s around 17 percent), “jobs bill” sounds like a good idea.
Recessions are cyclical things and typically run their course in a predictable pattern. Employment numbers are almost always the last of the indicators to improve.
Last week the headlines celebrated a strong 5.7 percent growth in the nation’s GDP. Though it was boosted in part by business rebuilding inventories, it is a good indication that we may finally be pushing our way out of the recession. We should expect to see unemployment numbers begin to fall throughout the next few months.
The $787 billion stimulus bill of a year ago can take little of the credit for the coming recovery. Government cannot spend our way into prosperity and should not be trying.
Now, when a recovery seems likely, would be the worst time for a stimulus bill that offers to fund infrastructure projects, promote green jobs and keep teachers, police officers and other public workers employed.
Not that I have anything against teachers, police officers or other public workers, but these are the exact proposals that came from the $787 billion stimulus package, and these proposals are demonstrably ineffective at stimulating the economy.
Democrat Senator Byron Dorgan of
Though it may be politically popular to be seen doing something, the best thing President Obama and the Senate could do now is nothing. Stay out of the way.
New businesses will create new jobs, small and medium sized businesses will create new jobs. New government stimulus spending will only create a larger burden on those businesses and taxpayers and stifle growth.
President Obama promised change, and while change may play well in a campaign, businesses do not react well to change. The President’s healthcare legislation and the cap-and-trade “green” bill create an uncertain environment for businesses – particularly when legislation is being passed on Christmas Eve in a bill that few if any people had had an opportunity to read and digest.
Now is the time for government to do nothing.
In his State of the Union speech last week, President Obama promised to set up a commission to look at reducing the deficit. That’s a fine idea, though it is unrealistic to expect a non-binding commission to have any real effect. He also promised to freeze non-defense discretionary spending, but it seems equally unlikely that this is a promise his fellow Democrats in the House and Senate will be willing to allow him to keep.
Nevertheless, Congress should focus now on reducing spending, cutting the deficits and working down the national debt. The Bush tax cuts – set to expire at the end of this year – should be renewed to keep that money in the private sector and out of the hands of the government. And job creation should be left to those who know how to create jobs.
We cannot, nor should we expect to, look to the government to solve our problems.
What the government can do is to reduce the tax burden and get rid of the regulation that prevents existing businesses from expanding and new businesses from starting.
Businesses, from the small to the large, are responsible for doing the heavy lifting in our economy. The best the government can do is step out of the way and leave that work to those who are capable of doing it.
Rob Peecher is editor
of The
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| Last Updated ( Thursday, 04 February 2010 ) | ||||||
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