If Obama was serious about Unemployment...

Unemployment is devastating on both people and governments. Not only do people feel the stress of wondering how needs will be met, they often take serious efforts of curtailing spending ,which has a direct impact on consumer spending. Governments suffer too. Local, state, and federal governments find unemployment is a drain on them as they are often unable to collect as much revenue as they could in more prosperous economies and those who are unemployed will often depend on agencies to help through these difficult times.

With that, President Obama recently had a Job Summit and he told those in attendance if there is "anything" the government can do to help increase employment, let him know. With US unemployment at the highest levels in a quarter of a century, "anything" should be taken quite seriously. Our situation has become urgent and steps should be made to act quickly. These include:

• Eliminating barriers between people and jobs. This isn't through temporary government jobs that will run out with the recent bailouts, but through real jobs that create revenue for them to grow in number and in quality. Although I oppose a federal minimum wage, you are not going to make one go away. However, the federal government could mandate the states have a minimum wage law in each state of the union and allow them to set it based on the needs of the people and the cities. This would not cost the federal government a penny, but would spur economic activity immediately. Certain cities, such as Camden (New Jersey), East St. Louis (Illinois), and Detroit each suffer from an unemployment of around 20 percent. they need help like this immediately.


• Eliminating taxes on corporations because they do not pay taxes, they are only tax collectors (through higher prices). Taxes are simply a fixed cost for doing business, plain and simple. If taxes are too high, businesses have no choice, but move to other countries where the rate is less so they can lower prices and be more competitive. Businesses do not take this actions because they are not patriotic. In the words of The Godfather, "it isn't personal, it's just business." This action would have a profound impact on high quality job creation. This policy would also encourage an increase in productivity and soften the blow of inflation.


• Ending taxes on wealth creation and replace income tax with a sales tax. This would eliminate the economic genocide against job creators we are seeing today and would more fairly spread the financial burden of government on all economic groups. If every economic group shared the burden of funding the government, that would encourage all groups to make government fiscally accountable.

Our situation is dire, the answers to our problems are in the market place and not in the halls of government or in job creation summits. These type of actions would have the government give the type of "stimulus" the nation really needs.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

The War on Job Creation

Back in the Dark Ages, doctors were known for bleeding patients to reduce fever and cracking skulls to relieve headaches. Everything old is new again as the Obama Administration pursues excessive taxes on job creators on both Wall Street and Main Street in order to create new jobs.

Elizabeth MacDonald brings the Administration's current efforts to light in a column at FoxBusiness.com. She points out that "A House bill now being drafted would raise $150 billion each year to pay for new manufacturing jobs by taxing securities transactions such as stocks, options, derivatives and futures...But the effect here would be the polar opposite-it would hurt job creation and even though Congress says they'll exempt trades made for retirement savings, chances are slim that will happen, and the fees will get passed along. And jobs in the finance sector, already flattened, will fly overseas if the US is the only country with this taxing regime."

MacDonald's article points out the obvious. Politicians develop and implement policies as if we were trees. They believe we will take a tax, regulation, or other cost of doing business without blinking. Unfortunately for government, we are not trees. I do not know about you, but if someone attacks me with an axe I am either going to fight or take flight. That is the same thing that happens in public policy. When government attacks with a tax on job creation, that job creator is either going to fight (which in this country requires a long term strategy that includes changing the people in power) or they are going to run (which is much easier to do in our current political environment and our abilities thanks to technology).

Where and how do people run? We have many examples of this in recent years and the Internet makes it very easy for people to move their money and the rest of their lives, wherever they need to go to do business.

For example, A recent study from the Empire Center for New York State Policy is showing that the state is suffering from a similar fate. The authors of the studies -- E.J. McMahon and Wendell Cox -- point out that between the years 2000 and 2008 and following massive tax increases for those with higher incomes, the families that have been leaving have income levels that were 13 percent higher than those arriving to the Empire State. In Manhattan and the New York County area, the impact was even more profound. Those leaving the Big Apple had an average income of $93,264, which was approximately 28 percent higher than those who were arriving (which made $72,726 on average).

What is most ironic about these type of policies is that they not only fail to create jobs, but also fail to generate new revenues. They simply do not work. The old saying remains true, "the more you tax something, the less you get of it." If you heavily tax job creators, you will lose them and the jobs they create. MacDonald believes that the bill being argued in this Congress will actually force some job creators out of the country. They, in turn would likely take the jobs with them. It is time to abandon ancient practices that do not work and pursue policies that simply make sense.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.