Now, I know none of you watched the Obama hosted pre-game
show last night, and neither did I (you'd know this if you followed me on
Twitter). But I did listen to it via the Mark Levin Podcast today.
So as a service to you, so you won't have to listen to it, here is my
analysis of Obama's speech:
1. Offering a tax cut to businesses who hire or
give raises to employees:
While I’ve never met a tax cut I didn't like, unless sales
are up and the business is expanding there is no reason to hire more people.
Raises work as a means of retaining good employees. This is
proposal based on flawed logic. Obama doesn't realize that a business is
in business to make money. It does not exist to play games with the tax code,
but to maximize profit. Hiring only occurs when it helps the goal of
profit.
2. Rebuilding infrastructure
Isn’t that was TARP was for? What about the last stimulus?
Shouldn't we have repaved every road, rebuilt every bridge, and rebuilt
every public building by now? The money designated for these projects
never ends up helping the economy because at every level the unions take a cut
and the work never gets done because it's being performed by aforementioned
unions.
3. Repairing and rebuilding schools
This could have been lumped in with #2, but I decided
to separate it because it was a specific point in
Obama's speech. The President makes the claim that teachers can't teach,
and children can't learn as well in dilapidated buildings? This
has nothing to do with jobs! Jobs come when the economy starts expanding
again and that rarely if ever happens in a classroom. The classic
complaint that teachers are underpaid is refuted by the fact that
most people are paid according to what they directly produce. Teachers,
while providing a necessary service, are not the producers in the is economy.
In a classroom there is no combining of raw materials to create something
of greater value than it's component parts. Investing
in rebuilding classrooms does not expand the economy.
Obama spoke on more than this but this is roughly when I
stopped paying attention, and being slightly hungover today this is all I’m willing
to really write about at this time.
So I’ve complained but didn’t offer a solution. You’re probably saying, “If you’re so smart
how would you fix things?” Okay, give me a minute.
I think I would use the Jerry Seinfield approach. The comedian once said about department store
clerks who ask “may I help you?” that they are either trying to help him or
trying to sell him something.
Government works much the same way. Any time the government tries to “help” the
situation only ever gets worse. Don’t
try to help the economy. Go back to your
designated tasks of building a few roads, delivering mail and keeping the king
of England on his side of the Atlantic.
Those of us who actually live and work in the economy will take care of
that ourselves!
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