The President doesn't understand small business. He's never been in business. He doesn't get it. Therefore, his attempts to help small business are not that sound. This is after he has attacked small business repeatedly with threats of new taxes.
It's only now, that he needs to focus on job creation, that small businesses seem to matter.
How does his plan create jobs?
The President has proposed a $5,000 tax credit per employee for all people hired by an existing business. Presumably these are new hires and not recalled workers.
If small businesses (including brokerages), in general, are having a tough time of just staying afloat, how do they create the additional demand and find the additional capital to hire and train more workers? Remember this is only a credit - it offsets money after it is already spent. Can't spend the money? No credit. Oh, that's where we started.
And if you want to start a business - which seems like a viable option for some people laid off by other businesses - and you want to hire people to help - again with limited financial resources - you only get half that of an exisitng company, or $2,500 per person as a credit.
Are start-up jobs really only worth half of an additional position at an existing company? Seems like new, start-up jobs would be even more valuable - not less.
This looks like more of a gesture than anything of actual substance. Now, if the government wanted to become a customer and begin placing some orders with small businesses around the country, that might work.
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Steve, As usual, I don't think our politicians, especially Obama, have any idea what is going on in the real world. Great post -- I only wish some politicians would read your blog.
Steve,
There is no money left to do it right now. It's all been squandered.
Rich
Steve
Great post, and I agree with both Gary and Richard they are right on target.
Good luck and success.
Lou Ludwig
They really don't understand. The simplest things can make the biggest difference. "It's the economy, stupid." If we can grow that, then we can afford to pay down the debt and get our financial house in order, -- then we can make other changes.
It seems so basic and uncomplicated to me. If 70% of the jobs in this country come from small business, but oh wait, it may be that 70% of all jobs in the future will be created by and in government, so that changes the whole scenario. How did this current congress get elected?
Steve - only someone who doesn't understand business would think that someone would spend $16,000 (slightly less than annual salary at minimum wage) to get a $5000 tax credit. The Obama administration has the lowest percentage of people who have actually worked in the private sector of any of the administrations in the last century. They have no clue.
Steve, With his next Spending Spree Stimulus Package Jobs Bill (at least that's what they call it now) he will claim million of more jobs created or saved by him.
Doesn't matter how many are lost in the meantime.
He does not understand anything about the real management of the economy or the country!
Gary,
Thank you. I wish they would read it, too - not that it would make any difference. :)
Steve
Rich,
This country needs to be run as the bankrupt country that it is - no more junkets, earmarks, or non-essential spending. :)
Steve
Lou,
Thanks. This proves that we get it but the Washington progressives don't. :)
Steve
David,
I agree, and it will takes years for this to happen. :)
Steve
Sandra,
The nucleus of this Congress goes back many years. The spendthrift and game-changing progressives have been there - now they have a clear voice. :)
Steve
Mike,
Quite well said. :)
Steve
Bob,
This "created or saved" is old. No one can measure a "saved" job. :)
Steve
They need a leson in how business works. We should throw them out for their own good and then they can try to start a business. It would be good humor for the rest of us.
Gary,
We lnew that he had no experience but people elected him anyway. :)
Steve
Kevin,
I like that. Maybe create term limits on the number of years one can hold a government job. :)
Steve
Steve, B.O. is a talker, not a doer. He thinks he can command things to get better, and they will.
Jon,
And when they don't, he'll talk some more and point fingers. :)
Steve