My 77 cents

Two items this week. The first is a conversation that must have taken place at the White House. Between the guys who wrote the President’s remarks on how women in America earn less than men.

“This is perfect for the President. Let’s have him say that women make only 77 cents for every dollar men earn. Good stuff!”

But is it true? Don’t a bunch of studies tell us the opposite?

“Sure. But we are trying to win women’s votes in November. And 77 cents has a great ring to it. It’ll catch on among women.”

But is it true?

“Not really. But women will remember it.”

But studies tell us women get pretty much equal treatment. When the hours worked are the same. And the educations are the same. And the years on the job are the same. And the experiences are the same. Then pay is nearly equal between men and women.



“Yeah, but 77 cents is soooo memorable. And nobody pays attention to the details.”

But we will be writing a lie into the President’s remarks.

“Who cares? The important thing is women’s perceptions. And their votes in November.”

But it’s not true. This 77 cents thing. It is a lie.

“Hey. What’s the goal here?”

Right.

The second item that caught my eye concerned small businesses. Actually it concerned a collision. Between theory and reality.

You should know by now small businesses traditionally create most of America’s net new jobs. Big businesses do not. They create jobs, yes. But they wipe out jobs aplenty. For net gains, small businesses are key.

Theory says there is a sure way to harm small businesses. Tax them more. Regulate them more. Audit them more. Threaten owners with even higher taxes. Add uncertainty to their environment.

Do all these things and you will harm them.

Well we did all these things. From day one of this administration. The President scolded people who grow wealthy in their small businesses. He threatened them with higher taxes. Obamacare inflicted more burdens on most small businesses. Various agencies flooded their environment with new regulations and obstacles.

Meanwhile our ginormous stimulus package pretty much ignored them. Much of it was written by big business lobbyists. They could give a hoot about small business. The President created a jobs council of business leaders. Not one came from small business.

In other words, Washington gave small business the back of its hand.

Theory says that should harm small businesses. Theory was absolutely correct.

This week we saw the numbers on creation of new small businesses. The number of new businesses soared in 2007. Soared even higher in 2008. The year this administration came to Washington. It has declined every year since.

In fact, the numbers have fallen off a cliff. After four years of falling, they tumbled another 7 percent last year.

Apologists were quick to pronounce this was good news. It indicates that people who are working are sooooo satisfied that they are not leaving their jobs to create businesses. And soooo satisfied with their jobs they are not creating businesses on the side.

Rot.

Wages are declining, have declined. This should spur people to launch businesses to make up the differences. They are not. For the reasons cited above. This administration crafted a number of measures that would harm small businesses. In theory they would.

And by golly, they have. Someone posed the question “Where are the new jobs, Mr. President?” Look no further.

From Tom...as in Morgan.

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