The private sector is the engine of this economy, but putting more spending and regulations in the caboose of the train is not going to fuel the engine. So expecting this economy to grow faster by watching and hoping is an empty expectation.
Much of the public has been deceived into thinking that cutting tax rates reduces revenue into the Treasury, and that it only helps the rich. The experience of the 1960s and 1980s, when Kennedy and Reagan were in the White House, respectively, debunks that notion.
Watching this economy struggle over the next 18 months is going to be especially painful for the unemployed, and those businesses that are barely holding on for survival. And, yes, the private sector will have to take the lead when we properly boost the engine.
Until then, we might as well watch grass grow, because that's about all the green this economy is going to see.
Well, here's the thing... Herman Cain makes the case about what needs to be done to get the economy going again. There is no doubt in my mind that it will take the private sector to stimulate the economy, and that Herman's solutions would be the right thing to do. But, I do have some questions... Oh, wait, not about what Herman wants to do, but regarding what President Obama seems to be trying to do.
Here's what is bugging me: How could the person that was touted to be so brilliant be such an absolute idiot when it comes to getting the economy going again? All that Herman Cain explains in this column are commonly accepted principles when it comes to encouraging growth in the economy. Businesses need certainty in the tax code. What will happen following the extension of the Bush tax cuts? The clear intent that Herman Cain shows to cut or eliminate the taxes for businesses investing capital in starting or expanding a business would be the jolt that this economy needs at this time.
In the mean time, Obama's rhetoric and lack of a real solution is not very encouraging for businesses, and that stymies any economic growth. His agenda sends a chill down the back of even the most courageous of entrepreneurs. What I can't quite comprehend is how a President would make so many wrong decisions when it comes to getting our economy going again. In fact, from what I've seen so far, Obama's policies are what is creating the stagnation!
But wait! Isn't Obama supposed to be so magnificently intelligent? Shouldn't he be aware of the economic principles that would move our economy forward, and not backward?
What Herman Cain wrote in this column is mostly what I learned in college in Economics 101 and my basic Business Administration classes that I took. So, there is only one thing that I can assume from Obama's actions so far: He is either really stupid, or he doesn't want our economy to improve. I don't believe he is THAT stupid.... So, maybe, he just doesn't want We the People to be able to start and/or expand a business and succeed. That would make Communism look bad! I'm just sayin'...
Private sector must lead recovery
By Herman Cain
June 13, 2011 ~ 1:00 am Eastern
A senior Obama administration official said recently that the private sector will have to lead this economic recovery. He's right! But the private sector cannot do it unless government gets out of the way. The Obama administration's policies have increased the size of the federal government, increased regulatory barriers and dramatically increased the national debt.
Most Americans sitting around the kitchen table knew that we could not spend and regulate our way to prosperity. But the president and the Democrat-controlled Congress at the time did it anyway. And now, after nearly $1 trillion in government spending, the economy is still stalled. Namely, 1.8 percent growth in Gross Domestic Product in the first quarter of 2011is anemic, and a 9.1 percent unemployment rate continues to be disappointing to the nearly 15 million people who are still unemployed.
Our national GDP could easily be growing at 5 percent or more, with the top tax rates for businesses and individuals set at 25 percent and made permanent until we replace the entire tax code mess. And taking the capital gains tax rate to zero is just the fuel that the small business part of our economic engine needs.
It sure would be nice to hear an unemployment rate report of under 5 percent again, which would mean at least 7.5 million people could be back to work. It would be more than just music to their ears. They might even have some real hope again.
"Hope and change" became spend and regulate in the Obama administration. And now, the president and the Democrats want us to "watch and hope." Simply extending the tax rates for two years with a 2 percent one-year payroll tax holiday for employees is not going to tickle this economy back to prosperity.
With all due respect, Mr. President, there is no hope that this economy will turn itself around. It will remain stalled because there are no meaningful tax cuts, there is no regulatory relief and there is still the uncertainty about what tax rates will be in 2013.
READ MORE at WND.com
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