Obama and Geitner on the Economy and Jobs

Obama:

President Obama sounds like the president of the UAW announcing all the jobs saved at GM (what with extra factory closings, etc.).

Perhaps I'm wrong and higher taxes and labor costs do actually inspire job creation; but, I don't think so.

Somehow the lesson of high taxes and social benefits leading to job losses is either a mirage or there is a touchy-feely reality to the economic condition of Michigan, California, etc.

Too bad the president doesn't know or can't get a grip on reality!

I'd sure prefer a situation where I really felt the economy was going to get better and be better for solid reasons such as - you get what you pay for and you get to keep more of what you earn and produce!

Geitner and Obama:
Sorry, but the mortgaging has not been to the banks but to pay benefits to the poor, disadvantaged and old that are unaffordable.

Take a look at what the UAW and its contracts did to GM. Then see how the government (both state and federal) is and has implemented similar plans and is pushing for more (this is particularly evident in those states with the highest tax rates and most lavish benefits, including those to public employees). Then ask yourself if you really believe that this was an anachronism or a logical result and outcome of these policies?

I'd say it's far more likely that the economy operates just like each individual. You give the individual a fair reward and proper payment for something, they'll sell it and do the work. You try and take too much from them (some consider this stealing or cheating, but let's just say I owe you $100 but only pay you $35).

You know from experience in all liklihood how you'd feel. You wouldn't feel good and want to do more work for the party that stiffed you.

Well, this is the larger economy!

People get to keep less of what they make; and, more of what they make is taken by government and given to those who didn't work or save for it.

And, comparable to the above example is what the government is doing to savers. They don't quite know it yet; but, the debasement of the currency so the government can keep borrowing in the short term, is also a hammer that some see.

The net result is a lack of hope for a better future - whether as a busienss person or a consumer or a job seeker. It could be turned around; but, this would start by letting people keep more of the fruits of their labor and having people pay more or take less of what is being offered for free (social services) or at a discount (medicare, etc.).

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Recall the impact of the share of GDP taken by government. When government takes more than 19%, we had stagflation in the 70's. Has something magically changed so we can have economic growth with the government taking over 25%?

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Sadly, you're buying exactly the mid-direction the administration would like you to buy into. Instead, look at the fiscal policies of the government.

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No, there is a clear plan of action! And, that is to bring the spending of governments down to a level that is sustainable; and, let the business community know that jobs come first and the government's first objective is to support those who want to work and invest and not those who want to retire at age 50 and not perform (which I read as unions).