CapitalistMarks

Obama a supply sider?

Posted on 09. Dec, 2009 by scott in general musings

We all know that unemployment needs to be addressed.  Obama seems to be focusing on this a bit more recently as per his talk yesterday.

Good thing too.

But, what is the deal here, is Obama chanelling the Gipper?  Has he been studying Reaqan’s successes in his spare time?  Wouldn’t that be cool?

On Tuesday, when the President began to lay out his new employment strategy I thought I was listening to the President Ronald Reagan.

You probably did too (if you are old enough to remember or have read about his economic policies).

Consider that Obama and his team are contemplating reducing employment taxes, providing direct incentives for new hiring, eliminating capital gains tax (one year only — but hey that is a supply side beginning) on new small business spending, federal guarantees of small business loans and ressurrecting the Gipper himself to coordinate the program.  Okay, that last was just for fun because everyone knows that Obama can’t to that . . . he is not a God as some (the Nobel Committee among them) think!

This is all good classical supply side stuff . . . not enough to satisfy Reagan’s good buddy Arthur Laffer(who posited that lower tax rates could increases tax revenues) . . . but a start.

I wish there was some direct government hiring instead of extending unemployment benefits (which adds to costs with nothing in return).  Heck if we are going to pay the unemployed for a year or more to not work then lets get them doing something productive  (see earlier post).

This is pretty cool stuff coming from a new President who has proved to be much further left than many voters thought he would be. And I am further encouraged he will seek real change in D.C.

Along with this he proposes increased federal spending for highways, bridges and stuff.  A further improvement in my opinion (again see earlier).

Now the bad part . . . the Obama team are talking even more about spending our way out of this  crisis.  Watch out deficits the dems are at it again!

But let’s focus on the good stuff . . . helping small business is a great start (and maybe enough to jump-start employment).  Small business are the real engine of growth in America–where the real ingenious stuff happens, where innovation hits the tar of the growth road.  Two thirds or workers in America are putting forth the good effort with small businesses . . . hence the best place to expand.

My bottom line:  I like this.  If implemented quickly this can be a great impetus to the economy.  Further such a quick implementation would likely raise confidence and increase consumer spending.  All good things.

I am hopeful just as long as the Republicans are supportive of the good stuff and don’t fight all change just for partisan political reasons.

Now, I would like you to remember this important point:

The best, quickest and most permanent way to improve governance in the United States of America is with strict term limits.  If our legislatures won’t implement this then we, the people, can.  Just don’t vote for anyone who is in office.  Any change is better than the status quo in Washington D.C.!!

thanks to flickr’s will hybrid for the photo of Hoover Dam

Tags: democrats, employment inventives, employment stimulus, infrastructure, President Obama, republicans, small business incentives, tax incentives for growth, unemployment, unemployment benefits