Lampe: Its the Labor Markets Stupid... (Obama announces Jobs Plan after Labor Day)

Prior to the new Jobs Plan President Obama is set to announce after Labor Day, the un- and underemployed people in the United States are asking, 'what have you done for us lately?' With unemployment at over 9%, both Democratic and Republican officials are trying to pitch the failure of the other party.

Let's face it, the Republicans are being hypocritical by slashing social programs and fundraising machines from Democrats (unions) without touching revenues; and Democrats are asking to keep key governmental programs without putting much of a fight to keep revenues (taxes) on the table.

But all this bickering does not solve the issue at hand. Yes, the federal budget will help ease political uncertainty in the markets, but it will not do much to increase employment as dramatically as the public wants. Although the Republicans' minds are in the right place, they are not thorough in their tax cut approach for the high income earners.

Would it not be a fair compromise to replace the high income tax break for a tax break specifically for companies employing people in the United States?

MAKING IT SIMPLE: Remember in school where we learned the basic process of our economy. You had the banks, industries, and the laborers. The bank would loan money to the industries to invest in their businesses. After the business is set up, they would pay employees to run the business. When the employees get paid, they go back to the banks and industries to start the process over again and expand the economy.

The question for our time is this, 'Are we becoming too efficient?' If we are not giving people the opportunity to earn money then spend it in the US Economy, does that mean the economy slows down because goods and services are not being purchased by the consumer powerhouse of Americans?

My three points of what I would ask President Obama to do:
1. Expire the tax cuts to the higher income brakets
2. Reform former tax cuts into a job-creating tax cut
3. Initiate these steps in your new jobs plan


Blog/Article by the Situationalist - Mike Lampe