Friday, August 12, 2011

Row a little faster

The above cartoon presumes that Obama understands that a free market creates jobs. I'm unconvinced that he understands that simple concept. His history (what we know of it) indicates that he, like all good Marxists, believes jobs are created by government central-planners and bureaucrats.

What Obama, nearly all Democrats in Congress, and too many Republicans in Congress fail to understand is that businesses are not hiring because:
▪ They don't know how much an employee will cost them under the nation's current fickle tax environment. If they have figured out the cost, they can't afford to hire.
▪ They don't know how much an employee will cost them as ObamaCare is phased in. If they have figured out the cost, they can't afford to hire. (The cost of health insurance at my employer went up $238/month/employee this year. They passed that cost on to the employees. That is only an interim increase. Once our new labor contract goes into effect, the employee share of health insurance will go up another $400/month/employee. Thank you very much, Obama/Pelosi/Reid and all the other partisan cowards who pushed that unconstitutional legislation through over the objections of the people.)
▪ They don't know how the unending reckless federal spending and resulting federal deficit and federal debt will affect the economy and, consequently, their ability to find consumers willing or able to buy products and services.
▪ They don't know how new regulations will affect the products and services they want produce. Will their products and services be required to meet irrational standards or even be outlawed? If they have figured out the cost, they can't afford to hire.

The Commerce Clause of the US Constitution requires and empowers Congress to "regulate" interstate commerce. At the time of the founders, the word "regulate" was understood to mean that the Congress was to ensure trade between the several States flowed smoothly, unimpeded by State tariffs and differing currencies and standards. Over the past 100 years, the government use of "regulate" has evolved into government central planning and restrictions on all trade -- even intrastate trade. This usurpation of power has even evolved to where the central government even controls what a farmer grows on his own farm for his own use! Imagine the stifling effect heavy-handed regulations have on a businessman's business decisions!

For some reason, Congress, the Administration, and far too many consumers believe that business is evil, that captains of industry are solely in the business of accumulating wealth at the expense of the consumer. Consider this: no businessman can possibly make money unless he provides a product or service that the consumers want at a price the consumer is willing to pay. If a businessman fails to do that, somebody else will step in to satisfy that consumer demand -- in a free market. If a business sells a product or service that harms the consumer (eg tainted dog food from China), informed consumers will stop buying that product or service and move their money to a competitor -- in a free market. (Government regulation did not stop the importation or sale of that dog food. Consumer demand and the desire of businesses to hold on to their market resolved the problem as soon as it was discovered. Government intervention came after the problem was resolved.)

Ironic, isn't it? The very people who hold the key to economic recovery -- businesses -- being forced out of participation in any recovery by the government, whose job is to protect a prosperous business environment.

Congress and the Administration must come to grips with the simple fact that the Commerce Clause requires the central government to provide a regulatory and tax environment where commerce can flourish -- where businessmen are accountable to the consumer, not to bureaucrats. Ultimately, it is up to the voters to elect wise and ethical people to Congress and the Whitehouse. Until that happens, we are all doomed to go over that waterfall.

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