What’s most puzzling about Occupy Wall Street is a persistent resistance by recent college graduates to acknowledging the cause and effect phenomenon manifested by big government interference in business.
When you employ the economic policies of Woodrow Wilson, FDR and Jimmy Carter you’re going to get a lousy economy because you’ve created a climate that’s unfriendly to business. To blame corporations and especially small business for not hiring when the business climate dictates they take steps to insure their survival is wrong.
If you’re the CEO of a corporation who’s responsible for ensuring capital gains for shareholders, why would you knowingly incur additional expense, thereby reducing the bottom line return on investment for shareholders in the corporation, putting your own job at risk? Contrary to popular belief, the overwhelming majority of shareholders in corporations are mutual funds that make up a substantial share of 401k and IRA accounts held by middle class Americans. A reduction in corporate profits hurts the retirement outlook for millions of everyday Citizens. The Monopoly game “fat cat” stereotype is a myth propogated by “progressives” interested in playing the class warfare card. In fact, most “fat cats” who do exist on Wall Street donated more to the campaign coffers of the current White House occupant than any candidate in American history.
If you run a small business, why would you expand the business and hire people when you don’t even know if your company is going to survive the year financially? If your company is on a shoestring budget just hoping to survive the year, what incentive is it to get a $5,000 tax credit by adding the overhead of a $40,000 job to your payroll? WITH the tax credit you’re putting yourself an additional $35,000 in the hole for the year. What sense does that make if you don’t need to hire anyone because your current staff is handling the work load?
When, in the United States of America, did having a profitable business start making you the “bad guy”? For centuries, generations of people have immigrated to America just for the opportunity to accomplish exactly that!
Companies need profits in order to expand, which in turn generates the need to hire. Equally important is long term certainty that investments (including the cost of hiring and training) are not going to be subject to radical and sudden changes caused by new taxes and regulations imposed by big government. Especially toxic in this area are laws resulting from legislation that Congress never read, filled with dictates that Executive Branch appointees will write regulations. If that law doesn’t fully take effect for years, how is a company to determine their future costs liability resulting from regulations as yet unwritten?
The best way to repair the economy is to stop those in big government who’ve caused the problem from “providing” any more big govvernment “solutions”. Let consumers determine winners, not big government bureaucrats. If consumers, in a free market economy, determine that a company’s a failure because they make lousy products and/or provide poor customer service, it’s NOT the role of government to bail them out. Furthermore, it’s NOT the role of the government to provide investment capital (taxpayer’s dollars) to businesses. Once big government reduces the tax rates on the repatriation of overseas profits there will be private investment capital to speculate on companies like GM, Chrysler or Solyndra.
There are people who’ve graduated from college who don’t understand this? College graduates participating in Occupy Wall Street should sue their schools for fraud and/or negligence.