Helping Businesses Create Jobs
July 18, 2011 | Business, Entrepreneurship, Government, Healthcare, Immigration
In my previous post “Keeping Business Competitive” I identified seven items that would help increase jobs in the United States. The items are as follows:
1. Lowering the corporate tax rate.
2. Implementing an energy plan.
3. Repealing Obama care.
4. Strengthening intellectual property rights.
5. Reducing regulatory burden.
6. Completing and implementing trade agreements.
7. Positive action this year’s deficit reductions.
The issues listed above are what I would call national relief because they could really help American businesses. However, our administration has gone so far down the wrong path that these proposed solutions might not be enough. We need some special actions from specific industries. I have selected three industries that I believe have been adversely impacted by administration missteps and errors. I will also address what needs to be done to help get these industries started. The three industries we will look at are the energy, manufacturing and aviation industries.
Energy – The Department of Energy should be a strong proponent of the energy industry and advocate of all types of energy. Unfortunately, it appears that during their first few years the department thought green energy would solve all of our energy problems; when in fact, solar and wind will never supply more than a few percentage points of our total energy requirements.
The next 10 to 15 years will require as much oil as we can produce. If we drilled as hard as possible for oil in the Gulf, the Rocky Mountain States, North Dakota and Alaska, as well as for natural gas in several other locations, we would produce a much higher percentage of energy from home produced resources. This would result in less money spent purchasing resources abroad and somewhere between 40,000 to 50,000 jobs created. There would also be an addition of thousands of required jobs created to service the industry.
What is so difficult about this? More drilling means more home produced fuel, an increase in jobs and cheaper energy; allowing American companies to have improved competitive prices. This is so simple that anyone with an understanding of business would support this entire concept.
I feel sorry for Obama. How could anyone who graduated from Harvard not understand this simple concept? Rush Limbaugh accused our President of trashing the economy on purpose on his radio show today. Readers, what do you think? Is he being devious or is he completely inept? Write me a comment; I would like to hear your opinions on this subject.
Manufacturing – Many of the national relief items would make a great impact in getting companies to stay in America and influence those who have left to return. There is one major tax item that spurs manufacturing in all segments. That is when President John Kennedy passed a law that made it easier for all companies to sell their products. This allowed many companies to be able to build multiyear backlogs. He passed an investment tax credit for any purchase of a capital goods item. Computers, trucks, boilers and just about every manufactured item in America was eligible.
The investment tax credit was assigned to the manufacturer’s product, but the value of the credit was transferred to the buyer, either a business or an individual. When Kennedy passed this bill, sales took off. Both manufacturers and buyers benefited, tax revenues went up and employment increased causing the overall economy to improve. We need to do something that has worked in the past! Why continue to stumble along and try to pick winners? Why not let the marketplace determine the winners.
Aviation – It is a tough, low margin industry. It appears that every time the aviation industry is ready to make a comeback, our President will make some a series of comments, which impugn the aviation owners and enthusiasts; createing a downturn for the industry. Does he want control of the aviation industry? His speech on Thursday took pot shots at the aviation industry and the people who own corporate planes. Although the number of people who listen to his speeches is declining, he still has a few followers.
In the last decade the aviation industry has dramatically changed, mostly for the better. Some of the airports have fallen behind and need to improve their service offerings. The industry will experience significant increases in fuel expenses, which could be offset by effective buying, co-ops or purchasing groups. Some of the airports have attempted to limit or prohibit competition through regulation. This is a sure path to cutting competition and eliminating the benefits a customer receives from a competitive environment, which is lower prices and more effective service.
