Yes, this is a shocker to all readers everywhere. One of my main points I keep harping about on this blog is that the government can do very little as far as economic growth and job creation. But, it can do great harm. This article simply confirms the part about the harm it can do.
Another shocker, last months jobs growth was anemic……… again!
By Lucia Mutikani
Employers are expected to have added 113,000 jobs to their payrolls, an increase from 96,000 in August, with the unemployment rate edging up by a tenth of a percentage point to 8.2 percent, according to a Reuters survey of economists.
The data, to be released by the Labor Department at 8:30 a.m. (12.30 p.m. GMT) on Friday, would be troubling news for President Barack Obama with little more than a month to go before voters go to the polls, even though he has an edge over Republican challenger Mitt Romney.
“Businesses are starting to focus more on the fiscal cliff,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester Pennsylvania. “It’s really hard to identify the spark that’s going to get us much stronger job growth until we get more clarity on the U.S. fiscal situation.”
Now I could go on about how this was Obama’s idea, but that’s not the point of this post. The point is, because of government irresponsibility, we have some draconian measures looming. It is unclear how this will turn out. It likely hinges on the election. But, businesses don’t know the outcome, so they can’t plan beyond that point. This is just one of the many ways government can destroy an economy. It is the uncertainty. This is something business people have suffered through during Obama’s entire term. It seems like not a day goes by without Obama talking about tax this or tax that or fair share this or fair share that. When this talk is taken seriously, and when Obama utters the word tax, it should be taken seriously, then it freezes business.
Now, I’m pretty much an anti-tax guy. I think we should tax only to the rate with allows for the government to run the constitutional mandates and nothing more. Still, I recognize that this isn’t likely to ever be a reality. So, given that, what we should do is to quit jacking around with tax rates. Level them out, simplify the code, and leave them alone. This way, people and businesses can plan properly and move on.
On the other side of the equation, the government needs to quit spending and then threatening to cut stuff. Just cut spending and leave it alone. The stimulus idiocy was a joke. But, even if it would have created jobs, the money would run out. Then what? Projects such as the stimulus destabilizes the economy.
If we want to grow a healthy economy we should stop all of this constantly changing the rates and the rules. Find the proper spot on the Laffer curve (preferably the lower point) and leave it alone.