It’s Your Money And I Want It Now!

July 13, 2009

This year the Congress at the urging of President Obama rushed through a voluminous stimulus bill which cost taxpayers a whopping $787 billion dollars. The bill contained almost 9,000 earmarks. You know those pet projects that senators and members of the House slip into bills to bring money home to their states and districts, essentially buying our votes with our tax dollars. The rest of the bill was essentially government spending on schools, roads, bridges and other infrastructure. There was nothing in the bill to stimulate the private sector, especially small businesses.

Most of the jobs in this country, between 66%-75%, are created by small businesses. But the stimulus bill is creating government projects, which will employ a relatively small number of people, mostly union workers, temporarily. If the stimulus was really supposed to help pull us out of the recession and put people back to work on a sustainable basis, it would be in the form of payroll tax cuts for small businesses so they could reinvest in their companies and employ more people. It would also be in the form of a withholding tax cut, putting more money in every worker’s paycheck immediately. The Democrats are engaging in class warfare to get the public to buy into this government-spending plan. They paint the business owner as the bad guy and then instead of cutting small business taxes, they actually raise them. But most small business owners are entrepreneurs. They are our friends and neighbors. They aren’t rich they don’t have a yacht, a mansion, or a string of polo ponies. They’re regular folks, that had an idea or a dream and through hard work, long hours and usually by risking their own money, or home, they built a business and along the way, they’ve been employing people both directly and indirectly. They’re paying their taxes, their utilities, rent and payroll. They are living the American dream and acting as the engine of our economy. If we punish them for their success by saying they have to give even more, then they can’t reinvest in their companies to grow them and they can’t put even more people to work. Business in America is already taxed at the highest rate of any nation on Earth. Why are we surprised that American jobs are being outsourced in this environment?

It’s a cliché but it’s true. If you give a man a fish, he’ll eat for a day. If you teach a man to fish, he’ll eat for a lifetime. The same applies to stimulating the economy. If you give a person a job on a make work government project, that person will work and take home a salary, until the project is done or the stimulus money dries up and the job goes away. If instead you create an environment for small business and entrepreneurship to grow and thrive, you’ll create millions of sustainable, long-term jobs that will give people the ability to growth of the economy. Because workers that are confident they’ll have a job in a year are far more likely to spend their money than a person who thinks they’ll only be employed for a few months. We need people to spend their wages in order for the economy to flourish. Should there be government investment in our nation’s infrastructure, much of which is crumbling before our eyes? Should we update our schools? Of course, but it should have been part of a comprehensive plan to get the real engine of the economy, the private sector, going too.

Steven Rosenblum

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One Response to “It’s Your Money And I Want It Now!”

  1. Prudent Man, CFA said

    This is just the tip of the iceberg.

    With the “Cap & Trade” Energy Bill the U.S. will be placed and a cost disadvantage to China and India which will result in more unemployment in our industries regardless of which jobs are added or lost in the energy production industry. Furthermore, as Al Gore said over the weekend, we will need a One World Government to enforce the act which means a One World Currency. This has been the agenda of the phony Global Warming proponents who ban honest scientific debate.

    It is the policy of the U.S Treasury Department, the BHO Administration generally, and the Federal Reserve Board to devalue the dollar in order to justify us going to a One World Currency. The evidence is, not only our obscene debt, but the currency held by the Federal Reserve Board has increased `1,100 per cent compared to last year. When they flood the world with this paper its value will fall dramatically.

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