"The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy." --Milton Friedman
On February 23, 2010, the Washington Post reported, "As Congress focused almost exclusively on health care late last year, the Congressional Black Caucus loudly complained that rising unemployment among African Americans was not getting enough attention." The latest job numbers reported by the Bureau of Labor Statistics reveal a staggering reality: the unemployment rate among African-Americans is over 16 percent. According to the Bureau of Labor Statistics, the unemployment rate for African-America youth is approaching 45 percent. Yet, President Obama and Democrat leaders in Congress have again chosen to ignore the economic plight of millions of American families by focusing on a $1 trillion government takeover of healthcare, rather than making it easier for private sector employers to create jobs.
History provides a guide to putting Americans back to work. President John F. Kennedy stated, "It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget just as it will never produce enough jobs or enough profits... In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now." President Kennedy's solution to job creation was broad across the board tax cuts. The late Congressman Jack Kemp (R-NY) said, "At some point, additional taxes so discourage the activity being taxed, such as working or investing, that they yield less revenue rather than more. There are, after all, two rates that yield the same amount of revenue: high tax rates on low production, or low rates on high production." Broad tax cuts must be combined with significant decreases in government spending and reduced regulatory burdens, but the Democrats have determined to do the opposite.
ISSUES OF CONCERN:
Increased Taxes: Small businesses have made America prosperous, but rather than providing incentives to create jobs, Democrat policies continue to cause uncertainty in the marketplace, paralyzing economic growth. In January 2010, a Rasmussen Reports telephone survey found that 59 percent of voters nationwide believe cutting taxes is better than increasing government spending as a job-creation tool. Democrats, however, continue to ignore history and the wisdom of Americans, choosing instead to increases taxes through health care reform, cap and tax, "responsibility fees" for financial firms, investors (taxes on capital gains and dividends), and small businesses as the tax cuts implemented under President Bush are due to expire on December 31, 2010. Such tax increases will further discourage businesses from hiring, as well as raise the costs of the products produced and services provided.
Increased Spending: At a February 25, 2010 hearing, in response to a question from Rep. Spencer Bachus (R-AL) regarding whether it was critical to have a long-term plan to reduce the debt, Fed Chairman Bernanke stated, "[I]t would be very helpful, even to the current recovery, to market confidence, if there were a sustainable credible plan for a fiscal exit." However, this year under Democrat leadership, the debt ceiling was increased by $1.9 trillion. Including the debt of Fannie Mae and Freddie Mac, the bankrupt GSEs, the national debt limit is approaching $16 trillion. Reporting on the February 25th hearing, the Washington Times reported, "With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned Congress on Wednesday that the United States could soon face a debt crisis like the one in Greece..."
Increased Regulatory Burden: The nation's current financial turmoil was a direct result of the federal government's meddling in the marketplace and failed housing polices. Yet, the Democrats are doubling down on failure. Their proposals, like the government takeover of health care, the plan to make permanent the policies to bailout politically connected Wall Street firms, empowering bureaucrats to determine the types and terms of credit products through the proposed CFPA (and Sen. Dodd's proposed Bureau of Financial Protection), authorizing bureaucrats to determine private sector compensation, and the decision to unleash the EPA on small businesses in the name of "global warming" have paralyzed job creation.