Friday, January 8, 2010

A Realistic Jobs Program (Take you pick): Report Raises Pressure on Obama to Focus on Jobs - WSJ.com

Report Raises Pressure on Obama to Focus on Jobs - WSJ.com

What the economy should be concerned about is not bringing back jobs that have to shift to the large part of the world that doesn't enjoy America's standard of living; but, to do everything to encourage learning and entrepreneurial start-ups and venture.

On one hand, a lot of small businesses using current technology could be sustained by not being drained through taxes to support income transfers and overly generous benefits (e.g. Los Angeles scheduling a vote to reduce gov't employee benefits because "they're now paying for 2 police forces and other sets of gov't employees - one working, one retired" - see LAT 1st week of Jan., 2010).

Next, we have to support venture capital. High capital gains and income taxes is pulling the wool out from under this industry.

To rely on government to fund make-work jobs just runs up taxes and the deficit - both of which work against sustaining small scale entrepreneurship and venture capital.

Thus, it would seem reasonable that current gov't policies need to be turned around.

However, if one sees government as the true panacea, then one doesn't really care about supporting the private economy (e.g. Obama, Pelosi) - it's all just talk. The private economy is just there to fund government programs. (One can see how that works in US states like Michigan and foreign countries like Greece.)

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