Saturday, November 6, 2010

Obama misses the mark

Writing in the New York Times President Obama makes a case for the country’s need to increase its exports:

AS the United States recovers from this recession, the biggest mistake we could make would be to rebuild our economy on the same pile of debt or the paper profits of financial speculation. We need to rebuild on a new, stronger foundation for economic growth. And part of that foundation involves doing what Americans have always done best: discovering, creating and building products that are sold all over the world.

We want to be known not just for what we consume, but for what we produce. And the more we export abroad, the more jobs we create in America. In fact, every $1 billion we export supports more than 5,000 jobs at home.
As tempting as it may be to snark about the president’s “pile of debt” comment, I will set that aside. I am struck by the president’s ability to write 763 words without mention two of the biggest impediments that US manufacturer’s face-taxation and regulation. The United States has the second highest corporate tax rate in the world. According to a 2010 World Bank study our effective rate is 27.9 percent while the average among the world’s developed nations is 16.8 percent. This country walks in to the global market place at a severe disadvantage. The disadvantage is compounded by the fact that our government has become downright slap happy when it comes to piling on regulations.

Yes, we need to become more competitive on a global level but Obama will not bring that about by running around glad-handing foreign dignitaries. Job One if he is really serious about putting Americans back to work is to get government out of the way.

Contrary to the liberal talking points, manufacturers do not move overseas because of cheap labor. They move because of our punitive taxes and innovation stifling regulations. Give businesses the tools they need to prosper and they will do so. Continue to hamper a manufacturer’s ability to put out a product at reasonable price and realize a profit and as sure as LeBron James moved his “franchise” from tax heavy Ohio to income tax free Florida, our manufacturers will continue to flee to more accommodating locations.

Rather than running around Asia, Obama should meet with Timothy Geithner and the heads of the various regulatory commissions. Unfortunately that is not how Democrats “do” business.

2 comments:

Anonymous said...

All I've heard is criticism from the media against President Obama.
Companies have moved to other countries to make additional profits. Labor other places is cheap. Our workers here refuse to go back to school and gain the knowledge it takes for this nation to be competitive. President Obama has not missed the mark. You cannot work in a steel mill, but the mill as left the country, that it not his fault. Now the most hateful people will set out to destroy what the democrates have worked for. I've never saw such unread,uneducated people in the house before. It looks like we are surely going back to the 30's and the fifties. Tell them all to get off medicare the old reps of the GOP and attempt to may for their medical care with their own cash. Like the middle class has ha to do since losing jobs? The Gop has no plans no history and God knows no future. The real truth. GOP says they want government out of the people's life. They need to be controlled with their seething hatred.

Carol said...

Shouldn't that be, "I've never seen such...."?