Nov. 13, 2009
According to ABC News, President Obama is now “calling for a summit meeting of experts to find ways to jump-start job creation. And a jump-start is needed.”
This comes on the heels of a new report that the federal deficit “hit a record for October as the new budget year began where the old one ended: with the government awash in red ink,” as the Department of the Treasury warned that “the deficit for October totaled $176.4 billion, even higher than the $150 billion imbalance that economists expected.” Note: this is the deficit for a single month - not a calendar year.
Mr. President, here are some ideas distilled from leading economist dating from Adam Smith through the current day: If you want to create jobs,
(a) Quit spending the country into economic oblivion, farming out our debt to foreign creditors who will someday soon call in their loans and damage our nation’s economy. If you stop overspending, you will also ameliorate the growing fear of many investors that we are on the verge of monetizing the debt, simply printing worthless bills that will hyper-inflate our currency. Fiscal discipline, if dramatic and real, will energize the markets.
(b) Cut taxes - on individuals and families, on major firms and S-corporations. Cut the dividend tax. Cut the income tax. Cut capital gains taxes. Cut, and cut some more.
(c) Reduce and simplify a vast federal regulatory apparatus that confuses and cripples business growth.
(d) End the government-mandated “health care reform” madness, which will further impose on our companies and employees growing fiscal, legal and regulatory burdens. Target those things in our system that don’t work and offer market-based incentives and tax reforms that will enable insurance providers to better serve the underserved.