Tuesday, December 8, 2009

Job Creation - 15 Reasons The Obama Job Creation Plan May Actually Increase the Jobless Rate

Yep, I said it. And here are the reasons why Obama is going to have a difficult time creating jobs even with his new robust jobs creation plan proposed today.

The plans to “spend our way out” of the problem did not work the first time nor any other time for that matter. Money spent on entitlement programs isn’t likely to create net jobs

There are still funds available in the Stimulus for infrastructure projects. All we’re doing is adding another $70 Billion to these unspent funds.

Tax incentives to homeowners for investing in energy saving improvements will benefit consumers that have money to spend on those improvements. The unemployed auto worker in Detroit will not benefit from some granola eating hippie in Boulder, CO who puts a solar panel on the roof.

The only tax cuts that are effective in jobs creation plans are those targeted at businesses who hire.

Increasing spending until you get the result you want is similar to “doubling down” and is just as risky in D.C. as it is on Wall Street or in Vegas.

Obama is borrowing sound economic advice from Mitt Romney but mixing it with his own plans to spend, spend, spend on Government expansion. When it doesn’t work, he can blame republicans this time.

If it does work, he’ll take credit for the increase in net job creation as a result of the spending. It will be difficult to prove which part of the plan was successful although, we’ll all know it was a direct result if reducing taxes on small businesses.

Letting the Bush tax cuts on businesses expire and reducing taxes on capital expenditures is a zero sum game. All he’s doing is shifting revenue by eliminating one tax while implementing another.

If you’re going to take Romney’s economic advice, you’d better take it all, rather than pick and choose. Obama needs to implement Romney’s tax cut suggestions as a whole, by extending the Bush tax cuts on businesses as well.

It’s been proven time and time again that increased taxes result in lower federal tax revenues.

Democrats’ plans to pay for everything with tax increases has not worked in the past and is partly to blame for the mess we’re in now. U.S. businesses already have the some of the highest business taxes in the Global economy.

Americans’ are getting tired of the seemingly endless new tax proposals. It seems as though every day there is a new Democratic tax proposal, whether it’s on junk food, cigarettes, gas, investment trading, marijuana, tanning salons, etc. “Tax and Spend” policies do not and have not ever worked.

Obama plans to use money left over from a successful TARP program which funds were supposed to be used to pay down our debt. Instead he is proposing we spend those funds as well.

Obama has never actually been an employer or even worked for an employer. He has no knowledge or experience of jobs creation. Hell, he probably couldn’t even conduct a job interview himself. Just look at some of the people he’s hired: Van Jones, Kevin Jennings, etc.

Obama has a history of misrepresenting support for his programs. Remember the CEO of Caterpillar who had to correct Obama by saying “the reality is that we’ll have to lay off more workers before we’re able to begin hiring again…” People are starting to lose faith and trust in his words. We’re ready to see some action.
I’m sure there are other reasons why Obama will have an increasingly difficult time improving jobs. I, for one, do not trust what he says as he has not upheld many of his promises to American’s during his infamous campaign.

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