“Businesses don’t hire because taxes are lower. That’s because taxes represent a relatively small part of the cost of hiring. And if taxes did make a difference then it would stand to reason that hiring would have been much lower under Bill Clinton’s presidency when rates were higher than they were under George W. Bush when taxes were slashed. Unfortunately, the truth is quite the opposite — under Clinton, companies hired nearly eight times more workers – 22.2 million — while Bush presided over the creation of 3 million jobs – the worst performance in the last 60 years. “
— Peter Cohan, Socialism today…aka Forbes Magazine
Wow. Businesses don’t automatically create jobs when you give them huge tax breaks?! My whole life perspective…shattered…
The paragraph above comes from that crazy crazy leftist Forbes magazine (what the fuck do they know about business, i know.) But their ultimate conclusion is even more interesting:
Companies hire only when not hiring means they can’t satisfy customer demand. Put another way, companies hire when the profits missed from not hiring exceed the cost of adding a new worker.
For those of you who have trouble following the bouncing ball let me paraphrase and simplify.
It’s the demand stupid.
Conservatives often claim that businesses must be given incentives to hire people. This is 90% false and 10% true. As with any rational actor, businesses, like people, respond to incentives. But the equivocation that conservatives make occurs when they confuse market based incentives with government incentives. Government incentives only save profit. Consumer demand creates profit. And if we want businesses to grow, IE hire more people, then we must cultivate a larger buyers market by financially empowering people and not big business.
The House GOP just released their “jobs program” proposal and …weeeelp it’s exactly what you’d expect:
“House Republicans…offered a proposal that would lower the top tax rate on individual and corporate income to 25 percent from 35 percent. The plan would also strengthen patent protections against some lawsuits, require congressional approval of significant new regulations, increase domestic oil protection and promote the party’s effort to make large cuts in government spending.
Yeah…really great fucking plan. In case you haven’t checked the scoreboard lately the Republican solution to health care, unemployment, and pretty much any problem that’s ever existed in the past 200 years is…you guessed it, cutting taxes.
Apparently the Civil War could have been avoided had the North just lowered the corporate tax on plantations. Also the Confederacy only defended slavery as a means to keep taxes low on “the blacks.” Remember, slaves have no taxable income.
For people who are allegedly some of the smartest people in the country, politicians sure do say some dumb things:
In an interview with WVLK-AM in Lexington, Kentucky on Friday, Paul told host Sue Wylie he supported the Republican filibuster last week of more than $100 billion in emergency spending that includes extended jobless benefits. Paul said the bill must be paid before the extension is voted into law — and if that can’t happen, it’s time for America’s unemployed to face facts and stop holding out for jobs similar to the ones they’ve lost.
“As bad as it sounds, ultimately we do have to sometimes accept a wage that’s less than we had at our previous job in order to get back to work and allow the economy to get started again,” he said. “Nobody likes that, but it may be one of the tough love things that has to happen.”
REALLLLY, Rand Paul?
Of course the fucked up thing is that conservatives like Rand Paul actually believe this sort of crap. In their eyes there are no poor, just people who make bad financial decisions, the unemployed are just too lazy to get a job, and businesses are infallible. After all they would never cut corners or break the law to make a profit, right?
There’s a certain level dogmatism in conservatism thought that involves a combination of ignorance and hubris. To simplify the current unemployment situation in this country as people who are unemployed are too lazy and/or unwilling to go back to work exemplifies this. People who haven’t been able to support their families for a year aren’t turning up their noses at jobs so they can continue to live the ghetto fabulously life style on the dole. Living off of unemployment and welfare carries with it an undeniable level of shame because you’re unable to provide for your family, struggling paycheck to paycheck on a minuscule pittance that the government gives you every month. Always living in fear of what you’ll do when the checks stop coming.
But aside from his complete ignorance on poverty, having been raised in the affluent lifestlye afforded only to the son of a multi millionaire’s politician, Paul misses an even clearer and undeniably obvious point. Unemployment IS the ultimate pay cut. Because no matter how much less hypotetical job A that only exist in Paul’s mind pays you, its still a lot more than zero.
A point obvious to everyone but Rand Paul himself.
They want to link Barack Obama to George Bush. Yes, that’s right. Republicans want to link President Obama to the horrible president that they not only “elected” but re-elected. The president who’s policies they were climbing hand and foot over one another to enact into laws.
An internal GOP memo prepared to brief some House Republicans as part of an ongoing probe into the Bank of America-Merrill Lynch deal takes direct aim at an unlikely target: Former President George W. Bush.
The memo directly blames Bush’s handling of the economic meltdown, and it coins a striking new phrase linking Bush and Obama and blaming both administration’s bailout policies in tandem for exacerbating the meltdown: “The Great Bush-Obama Economic Intervention.”
Yeah, ballsy doesn’t even begin to describe it. Basically the gist of the memo is “we fucked up, blame Obama” This would be like if Darth Vader tried to discredit Luke Skywalker by linking him with The Emperor. (Yup, I just busted out a Star War’s reference. That’s how fucked up this strategy is. I’ve said it before and I’ll say it again, but it never ceases to amazes me how low the IQ bar is to get involved in politics.
According to the NYT, we lost 524,000 jobs in December. 2.8 million total in 2008.
That’s a lot…