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Monday, September 5, 2011

Jobs, Jobs, Jobs

By now it should be clear that Obama is a buffoon on par with George Bush II.

Forget about starting his own war, condoning torture, killing civilians, approving political assassinations, and continuing the drug war (despite promises to end it) which continues to devastate minority communities. For three years he's talked about creating jobs and stimulus after stimulus he fails.

History will remember him as George Bush III

Reason Magazine has done a great job pointing out all the instances Obama has talked about creating jobs. Now Obama is acting as if its his number one priority and he's never given it the "old college try" till now. In reality, only the most faithful of Democrat  cheerleaders zombies party members will buy that load of BS (unfortunately there is a lot of those). They should be ridiculed with as much scorn as the Bush supporters who thought Bush was pro limited government, pro market and a capitalist.

I'm pretty certain at this point there is nothing Obama can say or do that will turn things around. But what can Nevada do to improve its own poor jobs situation?

This is where we are today - 
our leadership has tried everything but getting out of the way

Back in July, Nevada's unemployment increased from 12.4 percent to 12.9 percent. Was this just a hiccup or a new trend of continuing economic stagnation in the Silver State? I'm not sure, but we'll find out soon. 12.9 percent is worst in the nation but it is a large decline from the 14.9 percent that ravaged the silver state for 9 straight months in 2010.

But don't celebrate too fast, the bulk of the decline in unemployment stems from the fact that roughly 40,000 laborers have either left the state over the last year or given up looking for jobs all together. The situation is so bad that our labor force is about the same size as it was back in September 2007 - 4 years ago - but with 171 percent more unemployed people!!!!

Here are three simple things Nevada's government can do to create jobs:

1) Eliminate the minimum wage - at least for young people. Nevada's minimum wage is $1 per hour higher than the national average. Unemployment among the young is high and astronomically high if you're an African American or Hispanic teenager (one in three are unemployed nationwide). The fact is, the minimum wage creates unemployment. We can't afford that, neither can the unemployed.

2) Eliminate the business license fee - its $200. That sounds like a small sum, but Nevada charges that fee to small businesses, home-based businesses, and big businesses alike. Think about this for a moment. Want to be your own boss and start your own company? Nevada charges you a fee for creating your own job and jobs for other people! That is just stupid! Nevada collects $60 million from this fee during the biennium - that is another 1,000 potential $30,000 a year jobs.

3) Eliminate the modified business tax. The MBT is perhaps the single dumbest tax you can have if your goal is to create jobs. The MBT takes 0.63 percent of every dollar earned by every employee. In other words, the more people you hire and the more you pay each employee the more taxes you pay. Democrats are FINALLY coming around and realizing how destructive this tax really is...but they just want to replace it with another job killing margins tax (which taxes on gross revenue). Nevada is expecting to collect $298 million from the payroll tax this biennium - that is enough to cover the wages of 4,967 new jobs at $30,000 a year!

There are even a number of useless government programs that could be cut to pay for these tax reductions - eliminating class size reduction and pay bonuses for teachers with extra degrees alone would save the state over $400 million a year with zero damage to students. If you don't want to touch K-12 education then take the money from higher education which has become more of a drain on Nevada's economy than anything else. Seriously, what else spends $25,000 + per student but can only succeed less than half the time at producing an educated graduate? A: UNLV and UNR.

This is by no means an exhaustive list - there are lots of things the government can do. But most of what the government can do is having the government cut taxes and step out of the way and let the market start creating jobs and building new wealth.

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