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Government: create jobs or get out of the way?

by on Aug. 01, 2011, under politics

Reading the various commentaries this morning on the debt limit deal, I ran across one that suggested “common sense” says government should focus on creating jobs, not cutting spending.

Ummmm…how can the government “create” jobs without spending more money…which it does not have?

I think the message the business community has been sending to Washington for a long time is “get out of the way” of creating jobs.

One thing business hates is uncertainty. We’ve had a lot of that.

Another thing business hates is taxes. Seems like the line has been drawn and held by the Tea Party that the feds are not going to be raising federal income taxes on business anytime soon.

High interests rates stifle economic growth. Interest rates are as low as they have ever ben. All we need is someone willing to lend money now.

But one of the biggest drags on job creation is all the costs of doing business due to all the governmental regulatory schemes around.

Here is just one example….there is a $2 billion solar  energy project over in California. Tucson’s own environmental litigation factory Center for Biological Diversity was trying to block the project to protect 1,100 desert tortoises under the Endangered Species Act.

According to a report from the Associated Press, BrightSource Energy Company…the developer of the solar project…cut a deal with the CBD to buy some tortoise habitat and CBD would drop its opposition to the project. The details of the deal are secret. I’ll bet CBD got some legal fees out of the settlement as well.

Due to the Endangered Species Act, we are seeing all kinds of hostage deals around the country. El Paso Natural Gas agreed to throw $22 million at Western Watersheds Project, another infamous enviuronmental litigation factory, to drop is opposition to a natural gas pipeline in Nevada.

Every where one looks there are costs being added to projects due to extortion from the US Fish and Wildlife Service and radical environmental groups.

That’s just on the Endangered Species Act front. The endangered species tax

Look out across the spectrum and there is a vast net of regulatory schemes that government imposes on business to protect this or that special interest.

For example the Davis Bacon Act which guarantees union jobs for federally funded construction work.

Indeed there are many regulations which actually have a public health and safety propjection purposes…but there are also a lot of regulatory impositions that have nothing to do with protecting the public interest and everything to do with just raising the cost of doing business because some special interest got their way in Congress.

And that is not limited to Washington. We have our own job killing stupid regulation madness in Tucson and Pima County. Ever try and open up a business in Tucson? You know what I’m talking about.

If government really want to be a partner in creating jobs…instead of spending borrowed money to create jobs…government needs to review its regulatory schemes and get rid of job killing regulations.

That applies in Washington as well as in Tucson.



5 Comments for this entry

  • Ron

    It’s not the job of government to create jobs or spend taxpayer money to do it. The government needs to create laws or policies to enable citizens and businesses to thrive, and to avoid creating laws and policies that hinder citizen and business prosperity. Right now, the government is taking far too much money from citizens and businesses and hindering their prosperity. Tax cuts enable people to keep — and spend in the market — more of their own money, and allows businesses to invest more and grow their businesses and hire more FT and PT employees. Government medical rationing, obscene stimulus splurges and corporate bailouts at taxpayer expense always hurt the economy, businesses and taxpayers. Tax cuts in the past have led to more government revenues collected in taxation because the business environment was so robust without the shackles of intrusive government. In short government needs to be supportive of the economic pillars, without being intrusive or over-controlling.

    • leftfield

      “The government needs to create laws or policies to enable citizens and businesses to thrive…”

      Even if this occurs at the expense of others?  Lack of regulation allowed Wall Street to speculate.  This speculation took place, in the end, with taxpayer money, taxpayer jobs and the economy as a whole on the table, as the speculators weren’t required to be able to cover their bets in the first place.  Lack of oversight led Massey Energy to gamble with the lives of workers.  The workers lost…and then they died.

  • Cindy Coping

    Someone once said,
    Businessmen create jobs but politicians claim the credit.

  • Mike

    Hugh,
    One fact that is often overlooked is that the only jobs government can “create” are government jobs.  Lord knows we have enough of those already!
    Mike

  • J

    You nailed it Hugh, congrats.
    Get them (government) out of the way and the economy will thrive.  I just wish the government would listen.