On unemployment and the economy.

I was asked what I would do to reduce the unemployment rate in the country.  Before I answer that I would like to mention that the worst unemployment is in states that have been in control of the Democrats for a very long time.  The vast majority of states that have Republican governors AND Republican controlled Legislatures seem to be in much batter shape. – just an observation.

 Now – on to my answer on reducing the unemployment rate.

It seems to me that 90% of the time the solution to a problem starts with, “Get the government out of the way and…”

In this particular case we need to do certain things to restore our economy.  First, we need to stop the uncertainty in the financial and business arenas.  Things like a 1000 plus page health care bill and an 1800 page omnibus budget bill do not give confidence to people who are thinking about investing capital into a business.  I have an opportunity right now to start a business.  It would bring more tourism into the area and fill a demand that already exists.  Nothing big, maybe 3 jobs.  It will also require me risking capital and taking on some loans.  Personally, I will not stick my neck out, not with the current anti-business climate in Washington causing an unstable economy.  I can surely understand why no one else will either.  Most business are trying to survive the downturn and have little confidence that they will not get slammed again.

What do we need to get the economy moving?  Get the government out of the way and:

Eliminate 90% of the silly regulations that stifle business.  Did you know the paper containing regulations on raising and selling cabbage weighs over eight pounds?  Get the government out of banking and let the bankers (the people who know how to make money grow) do their job.  Repeal the Heath care bill and while your at it, get the government out of medicine.  Get the government out of the housing market, let it stabilize at the actual cash value level.  Then it can start to grow.  Defund Fanny and Freddy.  Sell the assets to private business.  Eliminate the EPA’s ability to regulate Co2 (while we are at it eliminate the EPA’s ability to regulate – period).

Another big slice of the solution?  Eliminate the confiscatory personal, business and corporate income tax and replace the whole thing with the Fair Tax.  When businesses don’t have to spend gazillions on accountants and tax lawyers to maintain their records, they will have more money to invest.  Business that went off shore to get a better tax break will come back.  Business from other countries will come here simply because the cost of doing business will be lower.  Now, this may cause some unemployment in Washington DC, particularly on K street where all the lobbyists are working to get the tax code rewritten in favor of their clients.  Frankly, I don’t see a down side there.

Finally once you get the government out of the way you re-energize the free enterprise system that allowed this tiny 13 state piss pot mini nation to become the most powerful economic engine in history.  We did it without the EPA, the DOE, the FDA, ATF, FTC, HHS or even the USDA.  We can do it again if we just “Get the government out of the way and…”


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5 CommentsLeave a comment

  1. The government got “out of the way” during the Bush administration and the result was the near total collapse of our economy. Same thing happened during the Reagan administration with the S&L scandal and bailout. Capitalism works best when it’s well regulated.

    • “Capitalism works best when it’s well regulated.” ??

      Isn’t that an oxymoron?

      As to the problems in banking, you can look toward the New England states Specifically Barney Frank and Chris Dodd. Using the force of government to mandate banks make loans to people who could not possibly pay the monthly bill.

      The banking industry is on of the most regulated businesses in the nation right up there with the energy. Ever heard of the SEC?
      There has been no real deregulation.

      As to all of being George Bush’s fault…. That’s getting a bit silly. The dems have has control of the purse strings since January 2007.

  2. “Get the government out of banking and let the bankers (the people who know how to make money grow) do their job.”

    I would submit that is the deregulation of the banks that have caused the dirth of the problems. Only after banks were allowed to expand and consolidate did we get banks that were too big to fail as well as insurance companies that were too big to fail.

    Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
    The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA) swept away all state barriers to interstate banking. It allowed financial institutions to locate branches in other states and to purchase or merge with banks headquartered in other states.
    Gramm-Leach-Bliley Act
    The Gramm-Leach-Bliley Act (GLBA), also referred to as the Financial Services Modernization Act of 1999, repealed part of Glass-Steagall, tearing down the walls between banking, insurance and investments. Companies could now merge, partner and operate freely within each other’s industries. The act also made it possible for the financial industry to group mortgage and other portfolios, selling them as investments.

    Read more: The History of Bank Deregulation | eHow.com http://www.ehow.com/about_5413083_history-bank-deregulation.html#ixzz12ctWfM00

    The silly regulations keep things like Standard Oil from re-emerging. Are all regulations good? No. Is no regulation good? No.

    I would also submit that what you want are competitive markets not free ones. Free markets will react to ensure their own survival which is not in the best interest of anyone except the market. Traders found the chinks in the CDS market and manipulated them to their own enrichment. De-regulation occurred with the best intentions but the failure of AIG was one of the unintended outcomes.

    It is a health insurance bill, not a health care bill. I know what it is titled but the title is wrong.

    Taxes are a conversation for another day.

    • In fact Jeff, it is a health control bill if you really want to state it accurately. Which makes it a people control bill. Not something our founding fathers considered a good idea.

      As to too big to fail, I do not believe it is the government’s job to save a company. I didn’t think it was right with Lee Iacocca’s Chrysler in the 80’s and certainly do not think it is right today. If the major automobile manufacturers were to have been allowed to fail (frankly I think because of over regulation and management buckling under union pressure). The assets would still be there. Another company would fill the void and fill the demand.

  3. Ben you Libs continue to piss me off. Read the current Lib rag Newsweek and you will be made aware of the top 20 reasons the econmy went in the tank.
    Bush was #15. Why ??? Because he didn’t make the Dems allow control lasw in fanny may and old Freddie. Plus he didn’t veto the overspending the republicans were doing. Plus he nominated a Mad (Cox) as a overseer that oversaw nada. The Dems have had control of Congress since Jan 07. Plus that had control of the Senate or 40 plus Senators for the entire Bush years. Govt. lesson. You need 60 votes to pass anything. You need 41 to stop it. The Dems put whatever they wanted into the spending bills and bush didn’t veto them. Quit drinking the cool aid.

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