Saturday, December 5, 2009

Unemployment - The Real Picture

There are about 27 million Americans either unemployed, under employed working part time because they can't find full time work, or who have just stopped looking for jobs. The real unemployment rate when all are included tops 17%. If we have hit bottom in November and that is a big if, and companies start hiring again to produce net new jobs of about 300,000 a month, which would be a lot of new jobs, it would take nearly 4 years to cut this joblessness rate in half to about 8.5%; let alone to put everyone back to work. The point is that if the Obama Administration doesn't stop all the talk about CAP & TAX, HealthScare and higher taxes, that are all jobs killers, it will take years to get our economy growing again.

And, President Obama is dreaming if he thinks that "green technology" is going to create millions of jobs in the United States. While perhaps the technology may be invented in the US, solar panels, wind turbines and a lot of other associated equipment is likely to be manufactured overseas and shipped to the United States to take advantage of cheaper labor, lower corporate income taxes and less regulations. Our country does need to become energy independent and the best way to do it in the next 20 - 50 years is to develop sources of energy like nuclear, natural gas, oil, and clean coal that exist right here in the United States. This would create good, high paying jobs that cannot be off shored. And, in doing so, we would create the bridge to the future when other energy sources are economically feasible and do not need government subsidies at taxpayer expense. All of our current energy sources can be expanded in more environmentally sound ways, which makes perfect sense.

Most important, we will not see solid growth in the American economy if taxes are raised as is being proposed by numerous Democrat Socialists in power. Higher taxes will negatively impact small businesses that creates 70% of the jobs in America. If a small business owner has to pay higher taxes, it will result in fewer employees on the payroll. It really is that simple. If President Obama had ever managed any private enterprise and had to make payroll, he would understand how it all works. But since the President has never managed any private or public organization, Obama does not have a clue. The economy will take off if the Bush Tax cuts are made permanent. And, corporate income taxes should be lowered to no more than 25% rather than the current 35%, which is among the highest in the world. Penalizing productive people who make jobs for others is counter productive. I don't think I have ever met a poor person who has made a job for anyone except maybe government employees that live off the misery of poor people.

Finally, Obama's Trillions in deficit spending that are bankrupting our country and causing the collapse of the dollar must stop. Every dollar spent by government is a dollar not available to the private sector to grow the economy. While it was proper to stabilize the banking system, all the other bail outs probably have done more harm than good. The SwindleUS Plan has been a complete failure. What economic growth is happening has occurred because Federal Reserve interest rates are near Zero. So is is monetary policy not Obama's fiscal policy that is causing some growth. Capitalism always rights itself, though it can be painful, if government would just get out of the way. Greed is not necessarily good; but it does cause economic decisions that are better made in the private sector than by government bureaucrats influenced by politics rather than common sense. i.e. Chrysler and GM should have just been allowed to go bankrupt, which happened anyway, without any government intervention, so that proper restructuring could have occurred. It is possible that Chrysler would have disappeared, which would have been OK because there is too much auto manufacturing capacity in the world. In the end, this would have helped GM and Ford.

The real picture related to unemployment is not pretty. President Obama and the Democrat Socialists that control Congress are making matters worse not better. Their anti-growth Socialist schemes are retarding economic recovery. While there may be months that look better here and there, a pro-growth, Supply Side, Ronald Reagan approach is the only way to fast track economic growth. 2010 and elections are coming. We must elect common sense Conservatives who have worked in the real world to generate real economic growth and bring full employment back to America.

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