Former President Bill Clinton has Democratic strategist James Carville to thank for his successful 1992 Presidential victory by coining the phrase, “It’s the economy…stupid.” Carville had the Clinton election team focus their campaign on the 1991 recession and the weakening economy even with incumbent President George Bush’s 90% approval rating after our invasion of Iraq in January, 1991.
Our current administration would have been wise to focus their efforts on creating jobs rather than creating an atmosphere that hampers economic growth. Since 2009, the President’s own Office of Management and Budget released information that 162 major regulations and rules have been enacted which have snuffed an estimated 100M from the economy. Rather than suing banks or creating nationalized healthcare, perhaps the use of some common sense could create a job or two rather than the 0 jobs we saw established in August.
From my “Think Tank” of one, my one man “Blue Ribbon Committee” has a few stimulative ideas guaranteed to create at least one job in September:
- Allow the trillions of dollars of US Corporations locked in the vaults of foreign banks a tax reprieve of say 15% versus the current 35% tax rate if those dollars reenter the country and are used to hire new employees in the US.
- Allow a several year tax break for the purchase of any home by any purchaser even if it is their first, second or tenth home purchase. The purchases can be used for rentals, vacation homes, or any other purpose. The quicker the vast housing inventory is reduced the sooner construction jobs are created.
- Allow any corporation a 2-3 year payroll and healthcare tax credit for hiring any new employee as long as they do not terminate other employees to make way for the tax advantaged hires.
- Start issuing drilling permits again get back to “drill, baby, drill” and get serious about natural gas development and get back to new off-shore oil drilling. Jobs will be created and our foreign dependency and price per barrel of oil will continue to be reduced.
- Quit having organizations like the National Labor Relations Board delay the opening of projects like Boeing’s plant in South Carolina because SC is more labor friendly than Washington State. The immediate result is the creation of 3000 jobs.
It took me a total of 5 minutes to come up with these ideas. Imagine if we had an Obama selected, hand-picked group of Ivy league MBA or law school educated “experts” together what could be created! It ain’t that hard people… get the government out of the way and provide an atmosphere where businesses are comfortable again with the business environment. Without jobs… stupid… we will not have GDP grow, a housing correction or more revenue to local, state and federal coffers.
The views expressed are solely those of the author and do not reflect those of LPL Financial.