In the two previous posts, I reported on things I liked about President Obama’s State of the Union speech and my critique of his specific small business jobs-creation ideas. In this post, I predict that all of the tax credits, bank loans or other policy gyrations designed to influence small businesses to create new jobs will fall woefully short of a successful result because none of these issues are the reason businesses aren’t creating jobs. The reason for sluggish jobs creation is best described by paraphrasing a recent movie title: Mr. President, we’re just not that into your policy initiatives. Here are the two issues Obama doubled-down on in his speech that are in direct conflict with his hope of new small business jobs.
Health care reform: Most Main Street small business owners will be reluctant to hire new employees as long as Obama and his party’s leadership push a health care reform agenda that sounds confusing at best and prohibitively expensive at worst. Mr. President, if you want more small business jobs, scrap the current health care reform bill in Congress and start over with market-based solutions that make health insurance portable by giving tax advantages to the individual rather than the 20th century model of deductions for the employer.
Climate change legislation: America’s businesses, large and small, are already the most carbon-efficient in the world when the appropriate measurement is ascribed, per dollar of GDP. Mr. Obama should congratulate businesses for this and encourage more of the same, instead of deriding and demotivating the marketplace with his climate-change policies that cause small businesses concern over what will happen to their energy budget if the current climate-change legislation is passed.
President Obama, your current strategy for motivating small businesses to hire more people won’t work. You need better small business advisors who can prevent you from embarrassing yourself with statements and proposals that demonstrate how out-of-touch you are with Main Street.
Recently on my radio program, The Small Business Advocate Show, I reported in more detail on these issues. Take a few minutes to listen and, as always, let me know what you think the government can do to help small businesses hire more people. Listen Live! Download, Too!