Quote of the day – jobless “recovery” edition
Great rant in the Las Vegas Review Journal by Wayne Allyn Root in which he points out the obvious – President Obama wouldn’t know how to create a job if his life depended on it. However, it appears he certainly knows how to kill any incentives to create jobs. Key graf:
I’ve polled all my friends who own small businesses — many of them in the Internet and high-tech fields. They all agree that in this new Obama world of high business taxes, income taxes, payroll taxes, capital gains taxes, and workers compensation taxes, the key to success is to avoid employees. The only way to survive as a business owner today is by keeping the payroll very low and by hiring only independent contractors or part-time employees provided by temp agencies.
There in a nutshell is why you see employers sitting on the sidelines – government has made it too expensive to hire new ones. Literally. So businesses are looking at ways to do the same thing they’re doing with fewer employees, and, if they need some help, looking to independent contractors (1099 hires) to fill the void. They require nothing in terms of health care, social security, or other tax collections. They can be let go at a moment’s notice. They are, at least in my opinion, the way many small businesses will choose to “hire” in the coming years, or, as long as they are essentially penalized for hiring new employees.
Root goes on to call Obama the “great job destroyer”. I’m not sure I’d go that far, but I think the policies he and the Democrats are putting in place (to include their obvious union preferences) are extremely damaging to the employment outlook and because of them, we’re going to see high single digit unemployment for a while. In fact, because of the fact that employers are being penalized for hiring new employees, high single digit unemployment may become the new “norm”.