This AP article is at the top of my home page this morning, and, after reading it, this little light went on in my head about the main difference between the approach to government by Obama and Romney. Actually, it goes back to a comment I made the other day about the relationship between economic growth and employment. Obama believes government can create jobs, and actually claims his policies have done so. But there can be no meaningful private sector job growth without economic growth. In each of the last 3 years economic growth has been slower than the previous year, and yet, according to the BLS, unemployment has declined from 10.1% to 7.8%. That’s sort of like a college student telling his parents that his grade point average has gone from a 2.5 to a 3.0, but he’s only attended half of his classes. It’s just not believable.
Now are there things that government can do to affect economic growth? You bet, and our lack of economic growth is largely due to uncertainty in the market place caused by things governments have done over the last 4 years. And no amount of stimulus or QE infinity can erase the negative effects of bad fiscal, monetary and regulatory policy. Government can’t just say to a private company: here’s some money — go hire someone. The purpose of business is not to provide jobs. Business exists to make money, and employees are nothing more than a by-product of a successful business. Progressive Democrats (I know — redundant), by and large, don’t seem to be able to grasp this simple concept. A President Romney may not be able to do any better, but a growing number of people think he couldn’t do any worse.
I know we have business people who frequent this blog — I’m one myself. Let’s have a discussion about the circumstances under which you’ve hired people, how government actions, tax policy and regulations affect your business, and what changes a President Romney could make that would have a positive effect on the growth of your business.