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Letter: For Obama, some economic advice

Last week President Obama gave a speech on the economy at Knox College. He said it would empower middle-income Americans to build the economic growth over the long term. Unfortunately the real unemployed are the 13.9 percent in the “U-6” unemployment category. These are not only the 7.6 percent who are still looking for a job but also the people who have given up looking for work and cannot find any. These people cannot afford to wait for Obama’s long-term programs to bring jobs. They need jobs now.

If Obama really wants to help more people get good, full-time jobs now, he needs to stop strangling businesses with complicated regulations.

He needs to stop the regulatory actions so businesses can have degree of certainty to plan. He needs to lower corporate tax rates and eliminate loopholes.

He needs to lower the tax rate for the $1.3 trillion held by U.S. companies in foreign countries, creating jobs for other countries when that money could be here creating U.S. jobs and building the infrastructure our country badly needs.

After all, 20 percent of $1.3 trillion is $260 billion of tax revenue that could create jobs to repair our bridges and airports.

Instead we tell these companies that if they do not pay 35 percent of that $1.3 trillion, they can just keep that money building other country’s economies.

We get no revenue with this policy. Amazing!

Obama accused the Republicans of political posturing and “phony scandals.” The truth is that the president’s speech was more politics of division rather than a speech uniting the nation.

As far as phony scandals are concerned, the Federal Reserve policy of being forced to print $85 billion per month to buy the U.S. debt is the real phony scandal.

JOSEPH MENDOLA

Warner

Legacy Comments13

Govt has declared war on business. Business is the enemy. For those of you who are under the impression that only applies to large corporations, you are very uninformed about how the economy works. We will be hit with inflation and the value of our dollar decreasing even more. This President will follow the same path as FDR and our recession will go on.

If a little learning is a dangerous thing, Rabbit's post indicates how menacing none at all is. "...[D]eclared war on business" is so over the top it cannot be responded to. Considering how American businesses pay lower federal taxes (actual collections not nominal rates) than their foreign competitors and lower than they themselves did in the past, the statement is hard to defend. Inflation? 95% of macroeconomists wish that the economy were healthy enough to actually generated rational fear of future inflation. And as to the nonsensical FDR reference, I would ask whose policies created the great depression (hint: Coolidge & Hoover) and whose ended it (further hint: Roosevelt). And cite the 1937-38 dip which was caused by a premature attempt to balance the budget. And don't cite World War II which was, sadly, the ultimate FDR / Keynesian exercise.

So you tell me why Gracchus small business is not hiring, expanding, or why new start ups are so low. You might also tell me why companies are switching employees to part time hours and seeing their insurance rates go up in some cases 75%. There is a war on business. Nobody is risking it because of the cost per employee, mandates and taxes. And there is more with the new EPA rules that will be coming out, more job killers. If you cannot see any of this, you have no idea how business runs.

In every objective survey, by which I mean NOT conducted by Fox News or some think tank with its own agenda, the number one reason by a huge margin for not hiring is lack of customers or fear of lack of customers (they really are the same thing). What specific job killer regulations are coming from EPA, always a good whipping boy? What mandates? You mean Obamacare? Obamacare which has just had its employer mandate postponed until 2015? The problem is that American business once felt itself to be a part of a community. Unfortunately many if not most are totally profit driven and have to be reined in by regulations and mandates when their behavior becomes antisocial. It appears that you have bought into the race to the bottom ideology that has prevailed since 1981.

If the federal reserve keeps printing money, think about what that means?

The issue economically that everyone should be very worried about is small business. That seems to be an area where folks are just not paying attention. Instead of focusing on corps, start thinking about why small business is afraid to hire and expand their business. When is comes to economics and recovery, small business is the key to what is going on. If Main Street is not hiring or expanding, that is a bad sign of how long it will take for the recovery to happen. Small business startups are also the key. But the numbers are not good in these areas. There is no confidence. More taxes and mandates make folks even more weary of hiring and expanding. Instead of politics, economics needs to be about what works.

$1.3 trillion held by U.S. companies in foreign countries - Companies already used that cry in the first "bring the money back" farce. They got the tax amnesty , brought the money back into the US and created no jobs. If anything the US should make a company pay taxes on all earnings they report. They can keep it wherever they want but owe the tax to the US.

Dodd Frank Financial regulations on a 100% democrat vote was shoved down our throats by Obama and it is killing any chance of an economic recovery until Obama and his democrat minions are gone / ....We can undo the folly of the democrats and Obama .......How do you fix the stupidity of 50% of the citizens that elected them

Joseph, you nailed it but those who use platitudes to define their political beliefs will never see the light. They are blinded by their own narrow, blinder driven view and ideology. The "profit and greed" demagogues are just around the corner, Joe, be careful.

I would ask 3 questions of the letter writer: 1) What are your qualifications in macroeconomics? 2) What makes you think that the Laffer Curve policies that have failed since they were introduced in 1981 might start to work now? 3) What is the scandal in the Federal Reserve's doing its job? With congress bound up tighter than a newly wrapped mummy Fed "pump priming" is just about all that's left to stimulate the economy. Regulatory "strangling" is the same sad old story that shows up whenever any limitation on business abuses is mentioned.

Well, I have seen your comments on everything from economics to climate change so I might ask you these questions: 1) What are your qualifications in macroeconomics and climate science? 2) What makes you think that the Laffer Curve failed, or trickle down economics or Reaganomics? I seem to remember a much better life in the 80's than I am experiencing now. Yes, yes that is my opinion or is it reality???? 3) What makes you think that the Fed can usurp the power of the purse strings held by Congress. Just because you think we should spend ourselves into oblivion does not mean that everyone does or has to agree with you and other progressives. Finally, regulations are good but not when they are used to raise revenue through oppressive fines and fees. Your assumption is that business abuses are running rampant. Not so. I have experience and "qualifications" in that regard, so I know of the over reach and the harm that it does in the name of government micro-management strangulating businesses.

Seriously Joe? We've had this agenda in place and pretty much running the train for years now. The corprations now pay something like 10-15 % of what they used to pay in taxes, with repeated promises of investment in new technologies, gazillions of new jobs, etc. made to promote the multiple tax cuts they got already. None of this has ever materialized, because instead it is all about profiteering and greed. Now we should give them more of a break, Joe? I for one, don't think so. Give mea break.

Republicans offered everyone a large Tax break - 1 YEAR TAX HOLIDAY - Obama and the democrats chose the STIMU-LESSss...how did that work out for ya all?

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