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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Real Job Creators: Consumers
Today on Face the Nation (hosted by fellow Horned Frog, Bob Schieffer), I heard Mitt Romney add his voice to the chorus of those saying that economic recovery would follow if only we relieved the terrible burden that the government has placed on the nations job creators: business. Were taxes and regulations were relaxed, this would reduce costs sufficiently to allow firms to do what they are already dying to do, which is expand operations.
But even if we grant the argument that business taxes and regulations are high (which is by no means clearin fact, its easier to make a case for the opposite), this ignores two crucial facts. First, as my friend Mike Norman has pointed out, employees are a cost, usually the most significant one faced by firms (Mike Norman Economics). For that reason, every rational entrepreneurs goal is to reduce, not increase, the number of workers they have to pay. And quite right. Entrepreneurs have families, too, and they need to feed and clothe them. It would be irresponsible to do otherwise.
More: http://www.forbes.com/sites/johntharvey/2012/06/17/job-creators/
CJCRANE
(18,184 posts)Supply Side Economics has failed.
Tierra_y_Libertad
(50,414 posts)Not to mention that over-consumption and spending is what got us into this mess.
DearAbby
(12,461 posts)BOG PERSON
(2,916 posts)CJCRANE
(18,184 posts)The whole austerity schtick in both America and Europe is just an excuse to shrink the government (by cutting public sector jobs, cutting benefits and entitlements etc). That takes disposable income out of the economy, leading to less demand, leading to less growth.
ETA: Plus cut taxes for the middle and working classes if necessary, invest in infrastructure, education and new technologies.