I know more than just somewhat about creating jobs, because I’ve been creating jobs since I was a kid.
When I was 12 years old, I had a full time after school job repairing bicycles and other things at a small sporting goods store. And between fixing things and even selling at that store, I started a weekend window washing business where I recruited kids in the neighborhood to work with me.
Creating jobs is not rocket-science. As a matter of fact, job creation is the most natural part of any free-market society.
AND HERE’S HOW IT WORKS:
I have a business and I need to sell, build, and/or manufacture something, but I can’t do it alone, so what do I do? I hire someone to work for me. If my business grows, I’ll hire more people.
Now how much less complicated does it get than that?
In effect, creating jobs comes down to two things and two things ONLY. Will my business make money? And will the people I hire help me make money? If the answer is no, then I won’t be in business, and I won’t be creating any jobs.
Whenever I hear politicians speak about CREATING jobs, I have to wonder how stupid people have to be to believe them.
GOVERNMENTS AND PUBLIC INSTITUTIONS DO NOT CREATE JOBS.
What governments and institutions like the world of academia create in terms of jobs are long-term taxpayer liabilities. They pay exorbitant salaries, provide unthinkable perks and unsustainable entitlements like pensions that are very often up to 10 times more than what workers get paid from the private sector.
When politicians come under fire for high unemployment . . . this what they always do:
1 – Set up a costly and USELESS commission to study the problem.
2 – Hold meetings and debates to find someone or something they can blame.
3 – Announce tax-funded infrastructure projects to get people working, as if everyone has the ability or the desire to pave roads and build bridges.
What the government NEVER does is what is the absolutely sure-fire way to create jobs, growth, and wealth, which is simply to get out of the way.
As a play-on-words from George Bernard Shaw:
THOSE WHO CAN – DO . . . THOSE WHO CANNOT – REGULATE.
I won’t deal more into how and why jobs are created, since it really is a no-brainer. But, I will delve into why jobs are killed. And it always comes down to just one thing – GOVERNMENT.
Governments are job killers. PERIOD!
1 – Governments make being an employer a misery through insane employee rights and obligations.
2 – Governments suffocate businesses, especially small businesses with so many regulations and bureaucracy, that being in business becomes overwhelming.
3 – Governments tax businesses to the extent that after all costs and taxes, the bottom line profits for far too many small companies is less than what the business owners payout in salaries.
I didn’t need any government assistance to hire kids to work for me washing windows. I never needed any government assistance to build our advertising agency. And I did not need any part of government to build our Equestrian Camping Center.
And unless you’re a giant corporation, or in tight with the government leaning on them for unfair tax-dollars (grants, special deductions – etc), as MOST big companies do, NO BUSINESS I KNOW OF NEEDS THE GOVERNMENT.
SO – HERE’S MY EASY-FIX TO JOB CREATION . . . UNEMPLOY THE GOVERNMENT.
And if the government isn’t willing to shut most of itself down, here’s a real alternative that could be set in place immediately, with immediate job growth.
1 – Establish a national flat-tax on all corporate sales . . . perhaps as much as 5%.
2 – Forget about all tax loopholes including amortization. You sell a product or service for $1. You pay $0.05 on that dollar. END OF STORY – no more taxes.
3 – Establish an employee flat-tax that does not come out of the employer’s pocket . . . say 20% or more. So every person will pay a predetermined equal percentage on income, whether that person earns $10,000 per year, or ten million dollars per year.
NOBODY CREATES A BUSINESS TO BECOME THE EMPLOYEES’ BIG BROTHER:
4 – The employee flat-tax must be designed to make employees responsible for their own lives, freeing the employer to do what the employer set out to do, which is to make money.
5 – Slash energy costs by legislating against oligopoly-controlled energy prices. And allow for aggressive energy creation and distribution throughout the entire continent. Utilize clean coal, oil, gas, nuclear, and other forms of energy that are cost affordable and reliable.
6 – DEREGULATE – DEREGULATE – DEREGULATE.
If the government would implement these six simple steps, the cost of government would be dramatically reduced; creating conditions that would slash the costs and complications of doing business in North America, while bringing jobs home without sacrificing life-style.
HERE IS A 100% UNCONTESTABLE FACT AND TRUTH:
Our North American countries (the USA and Canada) became GREAT when there was much less government; when entrepreneurs could simply take their dream, and work to make it happen.
Along the way, government decided that they were more important than the job and wealth creators and the innovators; and that they could buy votes on the backs of those who risked and sacrificed.
Even though at least 3 out of every 4 (75%) private sector jobs are created by small businesses, governments decided to a great extent through lobbying and fundraising by big business and labor, that Big Businesses, Big Banks and Big Unions needed privileges above and beyond the reach of all others, making the playing field very much uneven.
And today, we’ve allowed the government to dig a negative jobs hole so deep, that sooner rather than later, nothing short of national bankruptcy or the absolute gutting of government can solve it. OR BOTH.
THE IMMEDIATE FUTURE MIGHT NOT BE THAT GOOD:
My thinking is this – At one point, and we might be at that point here and now, government and the economy that the government has devastated will collapse under its own weight, that will create a misery index unlike any of us have ever seen before.
I believe that there will be riots in the streets of America that will be greater than what we’ve recently seen in Europe. I also believe that racial tensions will become a nightmare, since the disparity of joblessness and the lack of education and working skills between Blacks and Whites are a Grand Canyon APART.
And what about the 10 PLUS MILLION illegal Hispanics and the millions of other Hispanics who are flexing their cultural (Tribal) muscle?
I also believe that people in general have forgotten what personal responsibilities and obligations are all about. And as a result, the makers will slam the doors shut on the takers, and create a class barrier as wide and as deep as an ocean.
If what I fear will come to pass, as it appears more likely that it will every time Obama opens his mouth about the economy and jobs, and about the working class versus millionaires and billionaires, the nightmare will be inevitable.
The governments have run out of money. The job creators have run out of patience. And the people in the middle will run out of everything. And then what?
As I see it, the governments have just one shot at making it right. But, given the history of governments and the ignorance of the majority of people who after all is said and done will always want something for nothing, that one shot isn’t looking all that good.
Best Regards . . . Howard Galganov