Markets Flinch at Europe's Debt Woes, Fed Rate Plans - WSJ.com

Anti-Market and Anti-Job-Creation Forces Get More Recognition: Markets Flinch at Europe's Debt Woes, Fed Rate Plans - WSJ.com

Maybe investors are finally starting to think things through?

Examples:
1. Crowding Out: In the 1980's, the subject was briefly brought up with respect to the then current high levels of government borrowing.

If the government is borrowing, then they will get the loan before any private borrower - either a business or an individual.

Thus, the government will spend the money on entitlements before a business adds a new factory or an individual buys a new house.

(Is this what Obama and Geitner want us to believe?)

2. Highest corporate tax rates:

Since the US has about the world's highest corporate tax rates, is it logical that business will expand or come to the US; or, will it look elsewhere?

3. Possible Value Added Tax:

Hope you are familiar with the concept of 'economic utility'. Because, when the price of goods go up (due to VAT), then people either substitute or do without.

If the government is going to take 20% out of the economy from a European level VAT tax - and apply it to entitlements as its spending would imply - then again, private goods that could increase productivity and add jobs will be forsworn for government spending on entitlements.

You might need a new car to get to work or a new truck for work. But, with the price increased by 20%, you may try to stretch the use of the old car - even if it means more repair bills, higher fuel bills, etc.

Thus, the productivity of the economy slows down (somewhat tremendously) as the capital costs for any investment go up by 20%.

One can easily go on here. But, the bottom line is that government policies are inhibitors to job growth and any efforts with job credits, etc. just further distort the application of good common sense and supply and demand prerogatives.