Bracing against the wind  

Saturday, February 07, 2009

Tax Cuts Don't Create Jobs

On Tax Cuts:

All tax cuts do is increase retail spending at places like Wal-Mart. We are not a Wal-Mart economy. We are a CISCO, Dow Chemical and Goldman Sachs economy.

We are a country whose GDP is diverse, but is mostly built on high-value and high-quality services.

Do we want to change that? FOX, CNN and NPR all want us to believe that our economy is predicated on "buying crap at stores". This is false. Our economy is based on "people working". Our strong economy is built on hard work, with the some of the highest quality labor-per-hour anywhere on the planet.

The last thing we need is to sacrifice financial stability to boost retail sales or to squeeze a few Senate votes out of the same Republicans whose fiscal policies wrecked our economy in the first place.

The Obama administration, by allowing Republican old-school "borrow and spend" economics to influence the current stimulus bill, is continuing the polices of the Bush administration.

We need a 180-degree reversal of that kind of bad government.

If the private sector is unable to create jobs, then it is incumbent upon the government to create jobs.
The U.S. government can and should continue to hire people until the unemployment rate is down to an acceptable level, say 4%.

If that means half the country is working for the government, then so be it. If private companies can do better... let them. If they can't, then capitalism needs to take a back-burner until it catches up.

On Banking:

The government should get into the "business" of banking, ASAP. FCU's should be expanded. If Citicorp can't provide more security and lending options than the U.S. goverment, then Citicorp is obsolete.

Republicans pundits want to "scare" us about big government. They have been doing this for 8 years and led us to financial ruin.

The truth is that our government has always competed for services. Look at the Post Office and Federal Express. FEDEX can manage to profit very well, right along side government supplied services, but only if they work hard and run a tight ship.

Our banks clearly need the same competition. They are unable, in the current climate, to operate responsibly. Maybe with a little honest competition, they would have to clean up their act. And meanwhile, I already moved my money to a Federal credit union. No way I'm risking it with some nearly-out-of business company that is busy buying yacht after yacht while they still can.

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