Monday, July 5, 2010

Wayne Allyn Root calls Obama a Job Killer

The motivation from this blog comes from an article in the Las Vegas Review Journal by Wayne Allyn Root. He's dead on.
I think I've mentioned in a few places and to several people how government is a wealth consumer, not a wealth producer. I have also mentioned how  the taxation is going to drive people out of business. I've been watching all this trend since 2006.
The housing bubble created a lot of vaporwealth. (For those of you who (don't) remember the tech explosion of the 80's/90's, check out vaporware ) That wealth was used as the basis for raising taxes to fund a lot of government programs and capitol improvements. Now that wealth is gone, but the programs are still there requiring funding. During the housing boom, we were all pretty flush, and anyone complaining about soaring government costs was shushed and told that all this wealth should be used to help the government and we should all pay our "fair share". Will the government be giving us back our fair share, now that we can't afford its out-of-proportion spending?
No, wealth producers are going to get milked even more. There will be a lot of rhetoric about paying your fair share. Already, there are the health-care taxes, the cigarette tax, and any of the other taxes that Obama is "agnostic" about. I've already said that I think he's a polytheist on taxes.
One thing I keep sharing with my friends, is that, in addition to the taxes, are the costs of compliance. You have to take time to calculate these taxes, and pay someone to interpret any new laws, or take the time to read them yourself. All of this takes away time from actually running a business. And that destroys even more wealth (or at least the chance to generate wealth) or perhaps more correctly(and importantly), it destroys freedom--any time you spend on compliance, is time that can't be spent on your business, leisure, education, or whatever YOU want to do.
This is a great disincentive to having employees. We're going to be seeing a lot of small businesses decide they don't need employees. In fact, I keep seeing more positions being advertised as independent contractor positions. One of the pitches of multi-level-marketing (MLM) is that you don't have to have any employees. We'll probably be seeing an increase in MLM businesses, and I won't knock them.
The government has been in size and scope for nearly 100 years now. There have been some slow downs in the acceleration of  the expansion, but no reversals. No departments shed/pruned/lopped off/disbanded. The various administrations send money to their well connected (and generously donating) friends.
I guess the real question, is, " What are we to do?" At this point, I think it's wise to look into look for jobs with large companies that are in favor with the current administration (and hopefully the next), create your own job/business, get involved in an MLM (either energy or basic commodity--I wouldn't get into luxury fruit juices, or something that wasn't a necessity), get a government job, and hope that our "leaders" will get out of the way and allow the American people to recover, and the American economy to recover with them.
Other things to consider:
Why is the administration doing what it's doing?
Who does it benefit?
Where is this wealth going?
What is the purpose of any piece of legislation? (Not what they tell you on the news, but the real purpose--I'm skeptical about anything the government tells me--if we expect the campaing promises to be lies, why should we believe what they tell us about any piece of legislation?)
It's time for all of us to think like detectives or investigative jounalists.
I really hope you had a happy 4th of July.

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