I recognize that President Obama has never had a private sector job, so he needs some help understanding how the real world, real businesses, and real people work. Here is some free advice, that if he follows it, can help him get is presidency out of the ditch.
Businesses hate uncertainty in their markets. Business risk is a part of our ridiculously successful capitalist system. Business people understand that, work to mitigate risk, and evaluate risk/reward trade-offs everyday. What business people cannot tolerate and what makes them recoil into complete inaction is market uncertainty...things that could change the rules of the game over which they have no control, into which they have no input, and against which they have no defense. This reality also applies to consumers...as small enterprises managing their households and lives. If there are too many balls in the air that have potential to radically change the rules of their existence, businesses and the consumers in those businesses will stand on the sidelines, hunker down and wait to see what is going to happen. These are good and rational business reactions.
Obama has too many balls in the air. He is upsetting too many apple carts and heading down too many rat holes. What will the impact of healthcare reform be on small business? I have no idea. Neither do business people. What will the impact of healthcare reform be on the taxes small business owners and individuals pay? No clue. What mandates will be required by an ivory tower president and legislature? I haven't the slightest. Neither does anyone else. Starting to see the problem?
Cap and Trade...where is this headed? What will be the increased tax burden on consumers and business if Cap and Trade becomes law? I know one thing, whether direct or indirect, the cost of everything will rise for the United States market...and for the US market alone. India and China will be the great beneficiaries of Cap and Trade, while its impact on US business in unknown in in depth, only in its direction. This is a huge potential game changer for American businesses and American consumers. Its economic impact is potentially massive...but know one knows how big of a burden Cap and Trade would create and when it starts to dig.
Cardcheck...where is this headed? I hope to the garbage heap where it belongs. However, the president favors card check to help out his union base of supporters. How will this impact the cost of business? Well, it won't make it cheaper to do business if I have to overpay for labor due to increased unionization through simple cardcheck processes. How much will this cost American businesses, I don't know, and the point is neither do they, but like Cap and Trade it will increase the cost of doing business, we just don't know how much.
See the trend? There are way too many balls in the air. There are far too many potential cost/tax burdens waiting to be thrust upon American business in the name of...well, I am not sure what it is int he name of, since it does not appear to be part of any well thought out plan or strategy. I guess this is all in the name of paying back those who got Obama to the White House.
So advice for Obama, assuming he can see the problems he is creating for the businesses and people he so longs to tax into middle class....pick a one major initiative. Create a value proposition for the majority of Americans (other than giving away someone else' money) and insert that initiative as part of a broad strategy to improve the already fabulous economic system we have in America. If your initiative and plan do not achieve these goals or have the potential to achieve these goals...you are working on the wrong things.
This advice is solid and it is free. You can thank me later by keeping my taxes low, letting keep what I earn, and staying out of my healthcare decisions.
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