Small Business's #1 Worry?

A survey of small businessmen by the National Federation of Independent Business found: it's not taxes, and it's not credit. It's no customers.

So, the political dialogue about taxes or credit is less relevant to them than anything that would increase demand, like accelerating job creation. So, here are Democrats saying middle income tax cuts ought to be preserved, and Republicans insisting tax cuts for the wealthy not only must be maintained, but made permanent--at a cost of $700-800 billion to the debt--because, they insist some are small business proprietors--though few are). In addition, Democrats (with one Republican) have just passed similar bills in House and Senate, providing tax cuts and extended loans to small businesses: to spur hiring. But they probably won't have much effect.

What no one, either in the administration, or in either party, or either chamber, seems to get is this: people need jobs; business needs employed people; but businesses aren't employing them. So, what's the problem? Has government never acted as temporary employer of last resort before?

There are many areas where government could meet huge needs. The unemployed don't have to have jobs digging holes and filling them. We no longer allow heavy manual labor--we have machines for that, which costs more money and skills--but we could use clean up crews, teachers assistants, parking meter attendants, construction workers to repair and rebuild, and so on. Local governments could manage local projects.

If people are so concerned about illegal immigration, then they should go to work bringing in harvests, following crops northward; maybe the Feds could subsidize citizen workers.

The point is: what's holding up the recovery is a lack of jobs. Apparently, tinkering with loans, credits and taxes is not enough. Of course it isn't. Why would a business invest in higher output, by hiring more workers, or buying more machinery, when demand for the good or service they're trying to sell is so feeble and uncertain?

What are people thinking? The best and the brightest are pretty stupid.

When no one else creates jobs, government should be the employer of last resort. It can be. There are many things of lasting value that were built by the WPA, like the mural scenes in Post Offices, and the forest windbreaks planted by the CCC in the Great Plains; they stopped the dustbowl storms.

Yes, there would be a temporary hike to the deficit, but if there are no jobs, deficits will march off into the future--no jobs mean no taxes paid, and welfare or basic survival costs to pay for--or the costs of a repressive police state to keep down the growing, angry underclass, for whom there are no jobs.

The latter sounds a bit like the late Roman Empire: the wealthy got wealthier and enslaved everyone else, until the whole system collapsed in the face of the barbarians.