On Tuesday, I attended the Gainesville Area Chamber of Commerce Candidate forum for County Commission candidates. About a hundred business owners showed up to hear the vision of the six candidates for Alachua County. One common theme prevailed: the burden on local business from all levels of government has to subside for the health of the local economy. Increased taxation was shied away from by candidates from both parties. Consistently, all the candidates said we can either be dragged down by the national economic situation, or we find ways to improve upon it.
It should be apparent to all that after 18 months, President Obama’s economic plan is not working. Even some of the apparent good news turns out to be bad. According to professor Arthur Laffer, a good portion of the corporate profits we are seeing this year reflects a shift of profits into 2010 to avoid the higher taxes that will come in 2011 with the expiration of the Bush tax cuts.
What’s more, Laffer predicts these higher tax rates will provoke the second half of the dreaded double dip recession.
It’s been about two full months since graduation at UF, and many people are finding that the job market is nearly impenetrable. There is probably more money in Nancy Pelosi’s botox job than is being laid out to hire college grads new to the local job market. At this point, prospects for most are discouraging.
Likewise, the economic downturn has hit home for many of us, as well. Some of our friends and family members are in the same situation looking for stability in a tumultuous economic environment.
The financial situation our country is facing is daunting. The federal government is slowly backing us into uncontrollable debt but simultaneously refusing to consider a change in attitude when it comes to spending. Unfortunately, there is only so far we can stretch the American dollar. We’re currently only sustaining things because lenders around the world are still willing to give the US money. What happens when that stops? We will hit the brick wall of government debt.
In an incredible role reversal, at the G20 summit this previous weekend, the US continued to advocate large government spending programs; a lone voice among European protests.
Admiral Mike Mullen of the US Joint Chiefs of Staff recently warned that the increasing national debt is the biggest threat to U.S. national security.
There is also nothing encouraging to see on the employment front. Hiring thousands of temporary census workers does not count as real job growth. New jobs come from start-up businesses or newer entrepreneurial enterprises. The administration’s policy track has created a climate that has discouraged businesses from taking the risks of making new investments.
I’m not claiming to be an economic expert nor do I have the space in this column to extensively cover all of the issues that need to be addressed. However, I do think we need to recognize the ultimate importance of electing politicians this November and in the future that have a different approach to handling money. Having the government tax, borrow and spend is not the formula for encouraging economic growth.
When the fat needs to be cut, we can’t have politicians in office that simply look to raise the debt cap. The current administration has offered short-term solutions to long-term problems and refused to recognize the long term consequences of its spending habits.
Many economists are telling us we are nearing the point where the government will hit a debt ceiling. What we need, locally and nationally, are people willing to say enough is enough.
Bryan Griffin is a first-year law student.
