How does government best assist in job creation?
Posted By RichC on October 7, 2016
What is the goal?
More and better paying jobs, profits for companies and growing tax revenues to fund government services, entitlements and improved ability to pay down our nation’s debt.
How do we accomplish this?
There are two ways government helps to create jobs in the US. The current Democrats remain focused on #1, while the Republicans propose #2 — only one is sustainable enough to improve pay and benefits over time, so think before you vote.
- Democrats #1 — Government hires d
irectly or offers incentives to companies that hire employees … often adding employees they often don’t yet need in return for the tax benefit. This spending requires more from taxpayers and increased borrowing which elevates the debt. The result is what we have been seeing … a tepid recovery and a sluggish economy. The country seeing the slow rise in part-time and a minimum wage jobs, all with declining benefits. (visualize this as a single pie cut into increasingly smaller slices)
Republicans #2 — Government lowers corporate and individual taxes putting more money back in the hands of consumers and useful capital (often parked overseas) back in the coffers of business here in the U.S. As consumers spent, prices rise (supply and demand) and businesses uses their capital to expand production and hire additional workers. Competition for the best employees increases wages/benefits and as the economy grows, employees have more bargaining power. (visualized as the more pies and therefore larger slices for all willing to work)
Bonus:
If the economy grows, so do tax revenues and ability to pay for government services, save long term entitlement programs like Medicare and Social Security AND if voters can keep our Federal Government from ballooning, we can even begin paying down our national debt.
So before you vote this November, weigh carefully, not just the personality of the candidates we see, but for the philosophy and ideas of each political party that gives us the best chance to grow our economy while keeping us safe.
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