If one accepts that the economy and jobs can not improve until small business owners are confident enough to hire, the U.S. may be in for a long stretch of difficulty. We hear whispers of a “lost decade” but most people have problems imagining that.
Despite what President Obama is saying, the stimulus isn’t working and private sector job prospects are very poor.
Discover(R) Small Business Watch
–66% Unlikely to Hire New Workers With Proposed $5,000 Tax Credit.
— 4 percent rate the economy as good or excellent, down from 8 percent in January; 36 percent rate the current economy as fair, and 57 percent rate it as poor.
Few Small Business Owners Getting Help from Federal Stimulus Efforts
When asked if they are likely to hire new employees if offered a $5,000 tax credit, such as the one proposed by the Obama administration, 69 percent say that it is “not very likely” or “not at all likely,” 15 percent say they would be “very likely” to hire, 10 percent say they would be “somewhat likely,” and 6 percent weren’t sure.
The sour sentiments of small business are not likely to improve in the face of Obama’s renewed drive for mandated health care and the looming huge tax increases as the Bush tax cuts expire
Sorry, but there is no easy way out of the jobs wilderness. The current federal and most state spending levels are not sustainable. The country opted to try to mitigate the pain of fiscal and economic crisis by spending and borrowing like there are no tomorrows. The Democrats have decided at the same time that NOW, in the midst of an extreme economic downturn, is the time to impose a national health care cramdown. And oh, by the way, lots of new mandates and taxes.
The Obama progressive plan to spend our way out of our problems can not work and will lead to an even more severe long term recession (depression?). Or, the debt can be wiped away by a greatly devalued currency. Two bad options. . .
The proper course to follow is to take the pain now. Cut spending and cut federal entitlement programs and do it SOON. Drastically reduce unemployment insurance – 99 weeks is ridiculous and very damaging to the economy. Reduce the minimum wage. Hold the line on withholding taxes but drastically cut capital gains. Give full same year deduction for equipment purchases. Just remember, even with this prescription the country will continue to lose jobs, especially government jobs, in the near term. The unemployed may have to accept jobs that are available, instead of holding on for nearly two years for a job making what they used to make. This is part of the pain but offers a way back to prosperity.
To have any chance to do what is needed, first we need to elect a lot of conservative Republicans this November because . . .
None of this – none of what is needed is even remotely possible with the current Congress.