Skip to comments.Spending Cuts Mean More Small Business Job Creation
Posted on 03/18/2011 10:29:26 AM PDT by Kaslin
At the start of the 112th Congress, my fellow Republicans and I made a commitment to turn the countrys economy around and get Americans back to work. Over the past two years in the minority, we could do little as the Obama Administrations and Nancy Pelosis reckless spending increased our already massive debt by $3.5 trillion and our unemployment rate surged to ten percent.
Republicans hit the ground running in January, voting to cut spending by $2.6 trillion by repealing the onerous ObamaCare law. In February, while the Obama administration reported a record-breaking monthly deficit of $223 billion, we simultaneously worked to reduce our massive debt by passing a budget with $60 billion in cuts, banning Congressional earmarks, and passing 1099 repeal legislation that would reduce federal spending by $20 billion over 10 years.
But more must be done. With the debt totaling more than $14 trillion (that is $45,000 per citizen), a sluggish economy and unemployment still near nine percent, large-scale reductions in government spending to reduce our deficit are imperative if we want to get this country back to work and leave a prosperous America for our children and grandchildren.
On Tuesday, the House Joint Economic Committee Republicans unveiled a study that proves what we have known for a long timeless government spending lowers the deficit, which boosts economic growth and small business job creation. The study, entitled "Spend Less, Owe Less, Grow the Economy," affirms that reducing government spending as a percentage of GDP will accelerate economic growth and create an environment for hiring. The study looks at how a number of developed countries, such as Canada, Sweden and New Zealand, have successfully reduced government spending and stabilized the level of government debt through fiscal consolidation programs. Each country achieved their goals for government deficit reduction and GDP growth rates by drastically reducing government spending. We must do the same.
The philosophy in this study is consistent with what numerous small business owners have been telling me in our hearings: cutting spending, keeping taxes low, and reducing job-crushing regulations are all needed to unleash the power of the most dynamic elements of our economy small businesses and entrepreneurs.
President Obamas failed $862 billion stimulus bill is the perfect example of doing just the opposite. Democrats promised that the stimulus would keep the unemployment rate below eight percent and be the answer to all our economic woes. But based on the current job and economic climate we all know that didnt work. Spending taxpayer dollars on more big government programs does not create private sector jobs or foster real economic growth.
The long-term solution to our unemployment problem lies in the growth of the private sector; in particular, the growth and expansion of small businessesAmericas job creators. Small firms create seven of every ten new jobs in the United States and employ half of the countrys private sector workforce. As Chairman of the House Small Business Committee, I know we have a responsibility to create an environment that allows this important sector of the American economy to prosper.
Recently, several small business owners from around the country testified before the Small Business Committee about the impact the faltering economy has had on their businesses. They expressed frustration at the levels of government spending and pointed to economic uncertainty as a major inhibitor of growth and willingness to take risks. In fact, one witness testified that she wanted to hire more employees but didnt feel confident enough to do so. Unfortunately, this sentiment is common throughout the small business community.
House Republicans are committed to changing this economic atmosphere to restore confidence hopefully, our President and the Senate will join us. As Congress continues to look for ways to reduce government spending, we will do so with job creation as our number one priority. Every reduction that we make will spur important growth in the private sector and further stabilize our economy. House Republicans remain committed to restoring the countrys faith in the economy and we stand ready to make responsible, needed spending cuts to reestablish fiscal stability in our nation and get Americans back to work.
The Republicans are shouting about window dressing.
On the other hand, the regulations to do business must make it attractive for investors to invest in American job creation. Right now the investment environment in the US is less than optimum. The HC Bill and the FR Bill are the two biggest hurdles in place, but there are more in the pipeline, such as regulations on energy. Until we eliminate the hurdles, we will have high unemployment.
Put up $500 billion in cuts and defund Obama care and any other expansions in the past few years and I will take them seriously.
The median household income in 2010 was $52,026. When government spends more than that amount to create a job, on balance there is a net loss of jobs. Last year the median federal job that was “created or saved” paid $74,000.
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