The Obama bus tour America is about to witness, or ignore, presumably is designed to spark economic growth. And in one sentence, any economist worth his pay can find the exact problem with this presidency as it relates to the economy. No doubt the nation will hear more speeches about jobs, but net job gains won’t change because of erudite speeches. And on a related note, the government doesn’t create economic growth.
Obama is out of economic fuel.
While the White House has spent two years trying everything from economic stimulus packages to spending every penny it can borrow, it has failed to grasp that economic growth is built from the bottom up. If the individual has no money, or no wish to invest money, the economy stagnates. Money comes from jobs. Jobs are created by businesses who feel that they can safely invest in starting up or expansion.
The president’s agenda has destabilized the economy to the point where business people don’t feel safe. And while the Obama bus tour will put the president in touch with ordinary people, his agenda isn’t likely to change. A sensible response to this economic climate would be to try a few different approaches, like:
- Creating multi-year tax incentives for startup businesses, instead of talk about taxing the “rich” people.
- Eliminating corporate welfare like subsidies and reforming the tax code to allow for fair taxation for all.
- Keeping a promise to aggressively cut all regulations that aren’t necessary.
Why should Obama make these changes?
With a job approval rating under 40 percent, the president has nothing to lose by trying new tactics to get the government out of the economy’s way. But the real reason for making the changes is because the president’s ideas have failed. It’s hard to admit failure, but if the president is willing to reflect on his position and make those changes, he could turn his failure into a first-rate education and parlay that into a second term.
If that sounds, tongue-in-cheek, it’s only because the president’s attitude to this point makes it sound like a whimsical idea. The Obama bus tour is more of the same old failure. Even his best friends are giving up on him. What he needs is change that everyone can believe in, and it needs to begin with his policies.
Image Source: Wikimedia Commons