COST OF LIBERTY***COMMONSENSE CONCEPTS

Sunday, March 17, 2013

What do you think is best for America


In your mind what is the most important thing effecting  our lives right now?
For many the answer will be health care, others the deficit, unemployment and still others is our involvement in Afghanistan.   In your estimation what are our elected politicians doing about the most important thing you have listed as number one? 

In my mind the answer to all of the above is full employment, stop and think about it, what does it mean when we have what the government calls full employment:  When you have everyone who wants to work working, the tax rolls bring in maximum revenue.  It means corporations are making a profit and family owned establishments who hire more employees than any other form employer are doing well, the outflow of cash from the government in the form of unemployment and welfare dependency are reduced significantly.  We don’t need more laws and regulations, to stay competitive companies are forced to include a form of healthcare for their employees and the income revenue that is based on the taxes coming into the government is increased tremendously.  A country like the United States is much less vulnerable when the economy is at it highest. 

How do we achieve this full employment?  It starts with money, ever since the banks have been forced to live in the world of new regulations and restrictions things have turned for the worse, we seem to sometimes forget that we are a capitalistic country.  These laws though well intended have had a reverse affect on business.  A businessperson normally starts with a concept, in the past he would talk to his bankers, selling them on the wisdom of his plan.  The bankers would do a risk management assessment of the plan and put a value on his idea and if they agreed it was worthy they would loan against it.  In the 60’s and 70’s the idea of the venture capitalist became the rage.  Now that the Venture Capitalist have pulled in their horns and the banks are wary because of so many new regulations, capitalization  money for new business has pretty much dried up.  In the heart of this last recession long established businesses that required flooring (loans against inventory) such as appliance companies, furniture stores and auto dealerships found themselves between a rock and a hard place due to increased equity requirements.  Many of these firms just closed their doors leaving many unemployed.

The government controls the reins on our financial recovery, if they loosen up regulations and offer tax incentives for hiring, the employers of the country would respond positively.  Many corporations are sitting on large sums of money but are afraid of the onset of Obama-care and new taxes that will require capital to survive.  I think a good government program would start with the big cities by offering extremely lucrative long term tax relief for businesses who bring manufacturing jobs back to America.  Many of the these cities have an abundance of vacant properties they could put up to encourage new investment.  It’s a double win whenever a new job is provided, first the person becomes a tax payer and secondly they’re off unemployment.  They go from being a burden on the State to an income provider for the State. If unions are to survive they need to partner with these new businesses and instead of adversarial attacks they need to become employment providers again a double win.  The Union gains membership and these companies have a long range source of workers.  

That’s what I think, what are your ideas?

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