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Government Authors: John Savageau

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The Government Gets In The Way

There won’t be any job growth in small business according to a report by Michael McKee on Bloomberg today. This lack of job growth in the nation's economic engine is preventing the recovery of the economy – as if this is some sort of surprise!

In an article from November 9, 2009 entitled “Shalt Not Decision Making” I suggested that the economy and unemployment would have turned around already if it were not for the tax and spend initiatives being considered and pushed by the Obama administration.

No business of any size is going to take the risk of hiring new people when the economy is so uncertain AND when the probability of new taxes, predicated on employee counts, is so high (the so-called health insurance “reform” bill and the Cap and trade bill). Further, large businesses have been net job losers for years, so the only place that employment growth occurs is in small businesses. In other words, the success of this economy for all concerned requires small business job growth. Unfortunately, the exact opposite result of what will happen under the current government.

Liberals and their union supporters decry small business jobs as “lesser” jobs with lower wages and “unfair” conditions. And that makes sense when you consider that the average UAW worker makes a package worth more than $70 per hour, or $2,800 per week for jobs that non-union auto makers can attract workers for at $30 per hour (in the States). What the UAW, liberals, and other unions fail to mention is how the primary laboratory for these preferences and policies has faired over the last 60 years. You can see that story - a video by Steven Crowder which provides clear visual evidence of what happens when small business is sacrificed by union pushed/funded, liberal financial and government policies. For that video, Click Here.

You can read the explanation of why liberal, progressive, leftist (choose your word) economic policies fail in Thomas Sowell’s book “Basic Economics: A Citizen’s Guide to the Economy”. For more information on Sowell’s book Click Here.

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More Stories By Dana Barfield

Dana is the president of The Barfield Group, which has provided industry leading financial advice and investment management for more than 20 years. He is a frequent speaker and writer for a variety of industry, regional, and national publications on business ownership and wealth building related topics.