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.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.
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.
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.