Friday, December 31, 2010

Jobs Leave America While Obama Dithers in Washington

Obama - does this man know how people make a money is made? Does he think it drops from the skies by the good graces of God? Does he think that because he is President of the once greatest country in history people will just go on making money while he does all he can to thwart those efforts?

While only 900,000 jobs were created in 2010, U.S. companies sat on $1.1 trillion in cash. Why? The reason is that the business climate in the United States is anti-business and add to that the fact that we have a President in the White House who either does not understand about "business climate", or is downright anti-business then you have the ingredients for a NO GROWTH economy. Take your pick - it doesn't matter because business owners are not going to waste their dollars creating jobs if there is no gain to be had. Would you? So they are going to foreign lands where the lessons of lower taxes and regulations have been learned. Kudos for them. When will Washington get out of our way and leave us to the business of business?

…The fact is, companies sitting on cash aren't doing nothing. They're hiring overseas, creating 1.4 million jobs in 2010 alone, according to the Competitive Enterprise Institute.

That's not because they prefer foreigners to Americans, but because the bad business climate here pushes them to do so.

The rest of the world is a vastly different place from Obama's U.S., which is characterized by high taxes and protectionist set-asides for politically connected unions that shut out free trade.

In places like Indonesia, Singapore, Taiwan, India and Thailand, nobody demonizes business or blasts trade. Instead great efforts are made by the state and the private sector to draw in foreign investment by becoming more competitive than their rivals.

U.S. multinationals go to these places not because labor is cheap but because these policies also create boomtowns with lots of customers. Incredibly enough, sometimes overseas profits and jobs provide a lifeline for troubled U.S. companies back home. Take GM — today, its Brazil and Korea operations help keep it afloat.

Growth in the 8% to 9% range is typical in Asia. But even in other pro-business areas — like the city of Lyon, France, or the manufacturing mecca of Tijuana, Mexico — governments are going out of their way to attract U.S. investment.
…Mexico is drawing aerospace manufacturers and hiring engineers. Colombia, Chile, Brazil, Qatar and even the Republic of Congo are pulling them in, too.

Why? So long as profits are encouraged instead of taxed, the natural outcome is jobs. It's that simple. They get it. Why don't we?

Salon magazine noted that as companies shift their hiring overseas, the 1.4 million jobs created there could have, if they were created here, lowered the unemployment rate to 8.9% from 9.8%
.. READ "Why Jobs Leave" at IBD.

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