Free Markets, Free People

Why no hiring? Taxes and health care, that’s why

As I’ve mentioned many times, the engine of America is small business.  Those businesses provide jobs to 85% of Americans.  And according to the US Chamber of Commerce, they’re not going to be doing much if any hiring in the near future:

Small business owners’ concerns about the future—particularly on health care and taxes-—are impacting their hiring, according to the U.S. Chamber’s fifth quarterly small business survey released today.

Only one in five small businesses (20%) expect to add employees in 2013, according to the poll of 1,225 small business owners, conducted by Harris Interactive. The majority of small businesses say they are likely to keep the same number of employees over the next year – meaning there is likely to be little change in overall unemployment figures.

Concerns about health care and taxes (both brought to you by Barack Obama) are causing caution among small businesses and that’s because they perceive an “unsettled” business climate.  Consequently there’s no incentive for them to change the status quo.    In fact, they obviously believe there is some safety in the status quo (see the survey to see how they feel about their businesses locally) .

As we’ve mentioned repeatedly, government policy does have an effect on the economy.  It can be an enabler that helps create incentives for businesses to expand and hire or it can be a disabler, doing precisely what it is doing now to unsettle the business climate, create disincentives for expansion or hiring and have small businesses go into a defensive posture.

It doesn’t get more defensive than now.

More from the Chamber survey:

  • 78% want government to get out of the way.
  • 90% are concerned about the impending fiscal cliff and are worried that Congress will fail to take action to prevent it.
  • Nearly 60% say that expiration of the 2001 and 2003 tax rates and other business provisions, coupled with sequestration, will directly impact their business’ growth.

As you might imagine the road map to a better business climate is not hard to follow.  There’s just no desire by the class warriors to do that. 

Instead of doing the hard work of creating a business climate that will provide small business incentives to expand and hire, they’d rather tax them while demonizing them as the evil rich and talking about “fair shares” to 50% of the country that pay’s no – zero- income tax.

If this doesn’t paint the picture of what is wrong with the policies of this administration, I’m not sure what will.  This is Econ 101 stuff.  And apparently it is like a foreign language to this administration.

The golden goose is on life support, and the administration is about to pull the plug.

But let’s talk about Bain Capital, shall we?

~McQ

Twitter: @McQandO

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34 Responses to Why no hiring? Taxes and health care, that’s why

  • Bain Capital?  Are you crazy?  What we need to know is what Girl Scout Cookies Obama likes best.  By the way, it’s the mint ones.  He’s too in touch with the little people to know they’re called “Thin Mints”, but he knows they’re the minty ones.
     
    I didn’t know Girl Scouts were campaign bundlers, but I now conclude it’s likely.

  • can you say regime uncertainty kids?

    • Funny, I’d normally take offense to an American administration being referred to as a regime.

    • Ezra “I can’t find my own ass with two hands” Klein had a piece in the WaPo last week where he tried to blame the last “debt ceiling” crisis for a stall in hiring.  What he failed to mention was that a month before the stall, we got that package that we had “to pass before we could find out what was in it.”  So as we started to find out what was in it, hiring stalled.

      • Hiring has been stalled since the UI rate bottomed (4.7%) in late 2007 under the new Democrat Congress.
        Yes, it bottomed BEFORE the financial crisis hit, roughly a year later.

  • The “rise of the Lemmings” in the Senate yesterday won’t exactly help either.

    WASHINGTON (AP) — Democrats are going all-in in a fiscal game of chicken, saying they’ll let everyone’s income taxes rise on Jan. 1 and slash defense spending amid 8-plus percent unemployment if Republicans continue to balk at raising taxes just on those making more than $250,000 a year.
    The brave face is being adopted as President Barack Obama and Congress come to grips with the possibility that gridlock and stalemate will result in the government careening off a fiscal cliff in January with automatic tax increases, spending cuts and an approaching exhaustion of borrowing ability.
    “If we can’t get a good deal, a balanced deal that calls on the wealthy to pay their fair share, then I will absolutely continue this debate into 2013 rather than lock in a long-term deal this year that throws middle-class families under the bus,” Sen. Patty Murray, D-Wash., said in a speech Monday.
    Murray’s salvo was the latest in an almost daily back-and-forth between top Republicans and Democrats over the one-two punch facing the economy in January: expiration of the Bush tax cuts and the imposition of $110 billion in automatic spending cuts, half coming from defense.
    “They’re ready and willing to go right off the fiscal cliff if they don’t get their way,” said Senate GOP Leader Mitch McConnell of Kentucky. “Because they think it will make it likelier they’ll get their way.”

    • Story yesterday that the Feds have failed to meet a mandate to inspect incoming containers.
      That could be very, VERY bad.
      But we are in the very best of hands…

      • Oh what’s a shipping container filled with dirty rad material and some volatile substances going to do?

        • But we have resources to devote to monitoring CO2 and cow flatus on the prairie.
          You CANNOT make this up.

          • This recently presented paper at the European Geosciences Union meeting by authors Steirou and Koutsoyiannis reports that,  after taking homogenization errors into account, they find global warming over the past century was only about one-half [0.42°C] of that claimed by the IPCC [0.7-0.8°C].
            I swear that all the statisticians from the now defunct Tobacco Institute now work on Global Warming BS.

          • … but it keeps getting better …

            The IAC reported that IPCC lead authors fail to give “due consideration … to properly documented alternative views” (p. 20), fail to “provide detailed written responses to the most significant review issues identified by the Review Editors” (p. 21), and are not “consider[ing] review comments carefully and document[ing] their responses” (p. 22).  In plain English: the IPCC reports are not peer-reviewed.

            So, the basis of the EPA endangerment finding on CO2 isn’t “peer reviewed”.  The one that forms the basis for hundreds of billions of dollars by energy companies.  The one that is shutting down coal and setting millage goals for automobiles.

          • Settled.
            Science.
             
            DENIER!!!!!!!

          • The IPCC is the new “Flat Earth Society”

  • Or let’s talk about the flagship product of the Obama administration – the Chevy Volt
     
    http://newsbusters.org/blogs/seton-motley/2012/07/17/media-fail-chevy-volt-makes-gm-no-money-costs-taxpayers-hundreds-thous

    • … not to mention that there apparently was a media blackout on reviews of the new Chevy Malibu .. which according to experts is awful.

      • The Volt is a flagship in the same way the Vasa was the flagship of the Swedish navy.

        • The Vasa was built around the height of Swedish power and failed due to no one daring to tell the king the design was probably dodgy. Is the Volt then the pinnacle of American achievement under leadership that doesn’t want to hear the truth?

          • Well, I rather think it’s NOT the pinnacle of our achievements, that was Raquel Welch, or possibly the press top beer can.  However, a certain President seems to think it’s a pinnacular (invented word) sort of achievement of both ‘green’ energy and the Generous Motors company (Government Motors nowadays).  Clearly some high priced people have convinced the company it’s some kind of pinnacle since they won’t just admit it’s Chevy’s  Edsel (with apologies to the Edsel for the comparison).
             
            I doubt Obama sees the problem with the ‘pinnacle’ of battery power mileage merely matching the same accomplishment from 1899.  Nor does he probably perceive the fundamental price problem with the VOLT (when you’re worth as much as he is, $41k probably looks reasonable for a weekend hobby car. )  And we won’t even delve into what he might think of it’s alarming tendency to turn itself into a chariot of fire on occasion.   All part of that paracosm he dwells in.  I’ll bet the Volt is a swell car in his fantasy world.
             
             

  • But let’s talk about Bain Capital, shall we?

    Okay…let’s talk about Bain…but let’s get someone who know how the hell commerce and markets WORK, not some fourteen year old punk thug who has spent virtually ZERO time in the private sector, as with all his advisors.

  • It should come as no surprise to anyone that businesses are very skeptical of hiring right now. You can’t blame them, given the pending tax increases and the uncertainty in our economy. Couple that with the way President Obama conducts business and you have a recipe for disaster.

  • The story of small business being the engine of employment, yet alone “the engine of the economy”—like ‘mom and apple pie’, as well as George Washington and the Cherry Tree—appears to be suffering some criticism in some sectors.   http://www.thefiscaltimes.com/Articles/2011/08/29/The-Myth-of-the-Small-Business-Job-Engine.aspx#page2