June 04, 2010

The jobs report... Reality is Reality...

The jobs report, in no uncertain terms, sucked. Obviously, it's prompted still more questions about additional jobs stimulus and whether the government should do more. Of course, had the stimulus been what was needed more than a year ago, all this would be a non-issue. But Democrats caved into the Republicans and we got their version of a stimulus plan in the name of bipartisanship.

Can we now say enough with bipartisanship and let's get on with doing what's best, politics be damned (though, in all honesty, if the D's are afraid of the R's attacking them for doing the right thing they need to think about a different line of work)?

It's time to correct the error and finish what's needed to recover, once and for all. We've tried the carrot, now it's got to be the whip to employers to get them back into hiring.

The 09 stimulus package, being way too small, was ineffective in a couple of areas, including changes to tax policy which benefited employers who hired additional workers. All in all, one of the more decent right wing economic ideas that nonetheless still doesn't work in the real world. Why? Well, as it turns out, employers make the decision to hire based on profits and expected future revenue, not taxes. Of course, I knew this years ago but Republicans are only now catching up. So are some of my dumber Democratic brethren.

So, we need a stimulus plan that heavily incents hiring and wage growth. At the same time, we need to remove incentives for outsourcing and change tax policy to effectively end the subsidy enjoyed by many companies for moving workers overseas. Additionally, capital gains and taxes on dividends (including those hidden as retained earnings) must go up and we need to begin closing corporate income tax loopholes... I'll even give them a reduced tax rate but no more escape hatches other than those for hiring Americans.

And I'm also a massive fan of a 45% tax rate on incomes exceeding $1mn individually and $1.5mn as a couple. Sorry, but y'all have had an effective tax rate of less than 20% for too long and it's time you paid your fair share like the rest of us.

I'm tired of hearing the President and Democrats talk about how much they want the economy back on track and then talking about the random, stupid things they are doing to achieve that goal (it's like you're all sharing Larry Summers rat brain) as if any of it will be effective. The time for half measures and playing nice while hoping for the best is over. We need leaders now who will do the right thing.

The current state of the economy is, entirely, exactly what was always bound to happen since policy shifted in this country toward Friedmanite ideas and a right wing ideology. It all looks great on paper, in theory, since it promised the proverbial free lunch. However, in the real world, it's a set of policies and ideas that will always lead to disaster.

If Democrats need some help explaining that, just let me know.


Posted by mcblogger at June 4, 2010 02:57 PM

Trackback Pings

TrackBack URL for this entry:
http://www.mcblogger.com/movabletype/mt-tb.cgi/5136

Comments

Post a comment

Thanks for signing in, . Now you can comment. (sign out)

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)


Remember me?