Thursday, February 11, 2010

Tax Credits To Nowhere

I am a bit baffled by a proposal I heard to get employers hiring. I believe it is a $5000 tax credit for every employ hired. I guess maybe I don't understand all that much about business and do not have the keen intellect of those that propose something like this thinking it is going to stimulate anything.

1) A tax credit means nothing if you don't have the money in the first place to spend to earn the credit. It will provide enough incentive to sway a decision to hire if that is being contemplated. With so much doubt about the economy about what the regime will do next everyone is sitting on hold.

2) What are these employees to do when there was no increase in demand?

The goal needs to be increasing demand. To get people to let go of money and get it working. We need to sense stability and confidence through stewardship of the ship of state. In common parlance, we need to get a crew at the helm that knows what the hell they are doing... cancel their apprenticeship, move them out of the way to let the experienced get us off the rocks.

And would someone go to the captain's cabin, tell him how wonderful he is but he needs to put his mirrors away and focus on something other than himself.

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