economics politics

Problems with Obama and jobs

I keep hearing the ad where he says that companies that “send AMerican jobs overseas” will not get tax breaks. It’s an odd thing to say and do really. First off, which tax breaks is he talking about? Why are there tax breaks to begin with? Don’t get me wrong, I favor the least amount of taxes n general, but when certain industries or companies get “tax breaks,” it’s really just a way to pay back the donations that have flowed from them.

What it sounds like he is saying is that we should give tax breaks to companies that create jobs in the US, or at least they don’t ship them out. Read the first paragraph again… Any time that companies or industries are given preferential treatment, it means that there is some serious lobbying going on and a fat bonus to the management of that company.

Here’s what’s going to happen… There will be some companies that it is easier to give jobs to Americans than others. Giving them a tax benefit is going to skew what types of industries and businesses will be profitable to start. Ideally, no government would distort things like that and ideally, companies can be started in whatever industry people can figure out how to make a profit, regardless where the labor is. We want more businesses, not fewer. Even businesses that rely totally on foreign labor do hire some people stateside, isn’t that a good thing?

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