Sure looks like this recovery may be puny. Because we did not feed the economy the Wheaties it deserved.
Last week government admitted the economy lost more jobs than it first thought. It lost 800,000 more. Government also admitted it over-estimated growth for the third quarter. The new figures are anemic.
Regional banks tell us small businesses are not asking to borrow much money. That means they are investing sweet little in expansion. They are investing little in projects that will create jobs.
The politicians can crow all night about government creating jobs. The real jobs machine is small and mid-sized business. The truth is the bailout money went to big banks and big business. Government bailed out the unions and Wall Street. †It neglected entrepreneurs and Main Street.
And a lot of the bailout money went into pork. Politicians stuck their snouts in the trough for their cronies. They stuck out their hind quarters toward the guys who create jobs in America.
The politicians then poured salt in the wounds of entrepreneurs. They ran up unbelievably large deficits. These will have to be funded by more and more taxes. Who will get smacked by the taxes?† Entrepreneurs. The guys who run our jobs machine.
Put yourself in the shoes of an entrepreneur. You wonder constantly what your profits will be if you risk more time and money in your business.
You know all business is plagued with uncertainty. You are willing to put up with a certain amount of it. But today you face a wall of uncertainty.
The Bush tax cuts will soon expire. That is what Congress threatens. If they do, you will pay higher taxes. Then, the politicians threaten you with higher income taxes after that. Along with surcharges on your income. Along with 69 percent higher tax on your capital gains.
They threaten you with a VAT tax, maybe. Senator Carl Levin last week suggested you pay an additional tax to fund the war in Afghanistan. The healthcare bill will sock you with more taxes on your workers. Your state is going to raise your taxes too.
Everywhere you turn you see possible tax hikes. Including perhaps a tax on energy. This thanks to the cap and trade bill.
Can you think of any reason why you might shy away from investing to expand your business these days?
Only now, at this late date, is this administration beginning to pay attention to entrepreneurs, our job machine. The President says his people are finally mulling over some sort of tax measure. Thus far they have only mentioned tax credits.
Tax credits do not inspire entrepreneurs to create jobs. The prospect of profits does. The chance to make a fortune does. †
Lower taxes and get government out of the way. Those measures will inspire the entrepreneurs. Those measures will be the Wheaties for our economy. Wheaties beat pork any day.
From Tom ... as in Morgan.††††††††††††††††††
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