Free Markets, Free People

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”.



12 Responses to Quote of the day – jobless “recovery” edition

  • There are several very radical solutions to the employment problem, but one of the signs of a dying society is that public orthodoxy wouldn’t allow them to be considered. much less mentioned by anyone in a position to do anything about it.

  • The only reason I could punch the ballot for Bob Barr in ’08 was because of Wayne Allyn Root. The guy is the real deal and has a great political personality. Barr shoulda been his running mate…

    Obamanomics is hostile to small-to-mid-sized business.  They are not accommodated by fascist economic models, which is Obama’s favored form (see GM, etc.).
    Obama has refined the Cloward-Piven strategy to now include supply-side, as well as demand-side avenues of attack.

  • In fact, because of the fact that employers are being penalized for hiring new employees, high single digit unemployment may become the new “norm”.

    I don’t know what Root means when he states that there are higher payroll taxes and workers compensation taxes.  Anyone got a link?
    In fact, I just hired a new kid two weeks ago and I just don’t see any of this “penalization” you’re talking about.  So what exactly do you mean?

    • Good news!
      Turns out that this “good rant” is more full of sh!t than not.  I should’ve known… you guys just keep pulling this sh!t out of your ass, don’t you?

    • Penalized does not equal higher taxes. It could just be a higher regulatory burden.
      The finance minister of Bulgaria was giving a talk at CATO and mentioned they kept a 10% flat tax, not only to stimulate the economy, but also because it was easier for non-accounting entrepreneurs to file, and easier for bone-headed bureaucrats to administer.
      I suspect that the complicated new healthcare rules that are phased in slowly over many years, along with the new finance laws, and cap and trade means that companies hesitate to invest. (Frankly, they might hesitate mainly from economic issues and not ‘political’ ones but at the margin that could affect them.)
      Maybe you are not worried about cap and trade, but if you were a manufacturer in an energy intensive industry, you would be. If you were just at 50 employee mark, it might make a big difference. If  you were dealing in finance, it would be a big deal, too. These decisions at the margins have huge effects.

      • Oh, it’s MUCH worse and MUCH bigger than that.  Can you imagine being in the trucking business just now?  What will the ramifying costs of any kind of energy policy by the Obami be?   We have had a preview from Obama’s purple lips, right?
        And, of course, Poque is as full of shit as ever.  Does he PRETEND to know all the costs of Obamacare?  He MIGHT pretend that, as he does so much else…but it is only pretense.
        What will the costs be of extending unionization into more and more sectors of the economy?
        I could easily go on, but the point is made.

      • Oh, I have a pretty good idea how government can put a spike in your business.  I have my own bullsh!t that I have to go through with the Dept. of Ag and health – so I’m fully aware that it doesn’t have to be merely taxes to hinder business.
        But that wasn’t what the rant was about, was it?
        That’s a common failing I see.  There is plenty to bitch about Obama’s economic policies and other policies that have a direct cause and effect towards business, so why make up crap???
        It just makes one look petty, lazy, and stupid.

        • “It just makes one look petty, lazy, and stupid”.  Yes it does, when your sole counter argument is you hired a “kid” and didn’t see any penalization.

  • 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.

    I suggest that this is the way for a business owner to survive in just about any but the most absolutely booming economy.  Only a fool hires employees that he doesn’t have to.

    At any rate, Obamanomics isn’t the disease: it’s a symptom, the high fever that hits in the crisis stage of a disease like smallpox.  Either the patient survives and comes out immune to the disease, or else it kills him.

    Obamanomics is the culmination of years of growing ignorance about economic realities and flat-out greed.  It stems from our country being so rich for so long that not only was there a huge surplus of wealth that allowed us to fund our ever-growing nanny state, but also robbed our people of much need to understand where the wealth came from in the first place.  As a consequence, it was easy – perhaps it was inevitable – for politicians could increasingly raid the productive class.  Remember, “Make the rich pay their fair share!” was a catchphrase when The Dear Golfer was hustling his way through college.  He is merely the most rapacious adherent of that ideal to ever sit in the White House, the poster child for the parasite class that believes that it CAN vote itself a living not only not only because it’s been taught that this is right and proper, but also because it really has no idea where the money comes from and, hence, that it isn’t inexhaustible.  Liberals have been hacking away at the Capitalist Goose that lays the American Golden Eggs for years; The Dear Golfer may strike the final blow that kills it.  He certainly seems intent on doing so to the cheers of millions of liberals in their newsrooms, college classrooms, movie studios, NPO’s, union workplaces, and government offices, none of whom realize that the Goose has also been keeping THEM alive.