Posted By RichC on February 4, 2012
Fred Smith, CEO of Fedex, spoke on Thursday this past week and simplified his thoughts on turning around the economy and creating jobs. He supplied a chart which doesn’t necessarily clear up the “chicken or the egg” discussion associated with which comes first, but his chart does show that capital investment and private sector employment track, and have tracked, each other pretty close.
Now IF we can all agree that business owners and managers respond negatively to disincentives like higher taxes, more regulation and government control, then we should be able to conclude that they will be less likely to invest in their companies and probably won’t be hiring employees. On the other hand, IF they are given some kind of capital investment incentive, lower tax rates and are burdened with fewer regulation from government … they will be more likely to invest in their business and therefore hire employees … just as the graph indicates. If the goal is to create jobs, how about applying what works?
The free enterprise policies that have created jobs throughout the decades in America will work again today. We are still the same country and have the most innovated people and ambitious workforce. Come on Mr. President, just acknowledge that your administration policies of growing government, centralized control and adding programs have not worked well over the past 3 years. The improving numbers (very weak) over the last couple of months are happening despite the bloat … and has only seen improvement AFTER the mid-term election slowing even a bigger federal intrusion. Thank goodness for gridlock (although reversing the spending and shrinking government would have been preferred). Let’s open up the free enterprise system as it is the way to create jobs; just borrowing and taxing more out of the economy to fund your bloated federal government isn’t going to return America to greatness.