As most people are aware most of the jobs in this country are created by small businesses. The Obama administration has done three things that have strangled small businesses, stopped new businesses from starting and cancelled the jobs these businesses offered or would have offered if they were allowed to operate.
1st Dodd FrankSoon after Obama got into office he signed the Dodd-Frank bill to add more regulation for banks. This sounded like a good idea at the time, but the results have been disastrous for jobs. The Dodd-Frank effect is that big banks grew and smaller banks were forced out of business. Big banks do business with big companies and small banks did business with small companies. With the small banks gone the small business capital disappeared. New business could not start and many existing businesses had to shut down.
2nd Tax increasesThe Obama administration raised taxes on individuals and corporations. Small businesses normally survive on small profit margins. They can survive like that because the owner has almost exclusive control of costs. After the tax increases, small business owners found themselves with less capital to invest in their business. The result was a lot of people got laid off and many small businesses shut down all together. There was not an immediate effect on big businesses, because they let their pricing schemes absorb the cost. In other words, things got more expensive.
3rd ObamacareObamacare is a huge burden on small businesses. This is one of the worst pieces of legislation in our history. Many small businesses were forced to lay off people or reduce them to part time, because they could not afford to provide their employees with the mandated healthcare the law required. Many of them already provided healthcare that was affordable and they lost it for a plan that was not affordable.
Obama inherited a major economic problem when he came into office. Instead of going about with job creation, he preferred to kill more jobs and put people on extended unemployment. The impact of that decision was that many people took unemployment money instead of looking for work. In the mean time they lost their job skills and became unemployable.
Next, I will relate how Obama has hurt jobs from big business. Obama offered corporations the highest corporate tax rates in the industrialized world. The result has been that many companies moved their businesses out of the US to more tax friendly countries. The jobs they offered went with them. Big businesses are sitting on several trillion dollars they will not spend until the government policies are more business friendly in this country. That is right. Businesses had the money to expand, but did not.
The Obama administration and the EPA are at war with the coal industry. Power plants are being shut down and new plants are not being created. We have lost about 20,000 coal related jobs in the country that will never be back. We had an opportunity to create some jobs with the Keystone Pipeline, but Obama stalled until it was no longer viable.
The unemployment number in the last report I saw was 4.9%. Unfortunately, that number only includes people who looked for work in the last four weeks. Most people have given up looking, because there are no jobs available. When you add them in the unemployment number becomes 9.9%. There are about 90,000,000 people able to work who are unemployed. Many will never rejoin the work force. They are living off disability, often for pretended disabilities, early retirement which they could not afford to take or they moved in with other family members to survive.
The labor reports always talk about new jobs created, but they never tell you about the number of jobs lost in the same time period. Do you suppose this is an accident? Democrats like to praise Obama for low unemployment, but they never look at how he got it. Every time people stop looking for non-existent jobs, the unemployment number goes down. Thanks a lot. I think people would rather go to work.