This space has never really been used for political views, so this is a completely non-partisan, no left- or right-leaning assessment of some of the things going on in the U.S. economy and what our government is trying to do about it. No matter which side of the aisle you fall on, you can probably agree that things are a mess.
Recently, much has been made of President Obama's jobs program included in his proposed budget, unveiled today. The idea is to bolster small business by giving tax breaks to companies that hire new workers and give raises or hour increases to existing ones. It's coupled with an initative to provide more funds for small businesses to borrow at low costs, too.
Of course, the federations -- and by "federations," we mean "lobbyists" -- that represent businesses are saying "It's not enough." Democrat lawmakers are saying "It will be hard to make it work," and Republicans are saying "OK, but health reform comes off the table now." In other words, it's politics-as-usual in Washington.
But you know what? The proposed jobs initiative -- or at least the idea behind it -- is a start. And you gotta start somewhere.
It's a start because it FINALLY gives the government that seems so eager to put finger-in-the-dam billions here and special-interest billions there a way to FINALLY put some money toward a worthy cause.
Wealth-building.
If you think about it, that's what this country needs. Not stop-gaps. Not the false sense of wealth provided by tech or housing bubbles, but real, sustainable wealth. Money-in-the-bank, reduced-debt wealth. And where is that going to come from?
It will come from the entrepreneurial spirit of its citizens. It's got to.
It's got to come from inventors, creators of things, even if those things are ideas or services, instead of machines. It's got to come from producers of new things we need -- like fuel sources, medicine, better cell phone coverage, faster computers. Those people will drive the real wealth-building this economy, this country, needs.
Haven't we learned that Wall Stree fat-cats don't do it? Speculation doesn't do it. Paying trillions of taxpayers dollars to banks that turn around and throw those taxpayers out of their houses doesn't do it. In other words, moving money around does not CREATE money. Nor does betting more money on the outcome of those moves.
Small businesses have accounted for 64 percent of the new jobs in the past 15 years. That is who "creates" jobs -- the smaller businessman, the gutsy entrepreneur. THAT is who is most worthy of government support, if anybody is. THAT is who should not be allowed to fail. That is who will build back America's wealth if he is allowed.
So while the job tax credit is not an end-all-be-all, it's at the least a start in the right direction, finally. Mark Cuban, a perfect case of American entrpreneurialism if there was one, recently wrote on his blog that the government shouldn't just give tax credits to the companies that hire. They should also roll back capital gains taxes on investors who put their money into those companies and find other ways for smaller companies to raise capital and reduce costs.
Hopefully, the policy-makers in Washington will take notice. They propped up the banks in the short term. They saved the auto industry in the short term. They addressed the housing market in the short term. It's about time they looked at some longer-term solutions to get this country back on the path of building real wealth.
That long-term solution is backing the American entrepreneur. The jobs tax credit isn't nearly enough, but it's a start.
And you gotta start somewhere.
Comments