CHICAGO, July 1, 2011 — G.E. CEO Jeffery Immelt, who also heads the President’s Jobs and Competitive Council, told business leaders recently that they must start hiring. The administration has been complaining that businesses are sitting on over $2 trillion in cash. They feel that cash should use that cash to create jobs.
“The people who are part of the business sector, the people in this room, have got to stop complaining about government and get some action underway,” Mr. Immelt said. “There’s no excuse today for lack of leadership. The truth is we all need to be part of the solution.” (CNN Money)
Businesses have got to stop complaining about the government? The government that has done everything to curb their ability to earn profits? The government that puts road blocks, obstacles, and barriers to them? The government that strangles businesses in bureaucratic red tape? The government that is the main reason businesses and jobs fled overseas? That government?
Business is not like government. They do not fill job vacancies just because they are a line item on a budget. They fill vacancies because they actually need the employees. Government fills vacancies just because.
Businesses try to keep a cash surplus. This is responsible fiscal management. Businesses do not borrow more than they need. They can’t. Banks don’t allow it. They can’t run on a deficit forever. That leads to failure. Businesses can’t spend wildly. They have a responsibility to their stakeholders and their lenders.
The government is responsible to no one. Not even the people.
When revenues are down businesses do not produce as much. They do not need more employees. They cut costs across the board. When government revenues are down they borrow or raise taxes. Government never cuts costs across the board or shrinks in size. It expands continually.
Businesses have figured out ways to sustain themselves and earn profits with less people. They mastered technology and took advantage of its cost savings. Government? Well we know what they do.
Government expects businesses to operate like they do. Spend money, hire employees they do not need, and ignore the bottom line. It is the other way around. Government should operate like business.
In business profit is the only game. There is no social compact created by Dystopian ideologues. The only reason to be in business is to earn profits. Maximum profits at minimum cost. Profits enable businesses to hire more people; if they need them.
Businesses can start hiring again if the government would get out of the way. The United States has lost its manufacturing base over the last 45 years. It just cost too much to research, manufacture, distribute, and sell products in America. It is cheaper to just distribute and sell them.
In the mid 1970s industries, manufacturers, and businesses loudly complained about increasing government regulations written in a language no one understands. They complained about the the tax structure and IRS regulations. These forced companies to pare back, shut down, or leave our shores. American business was becoming uncompetitive and the government did nothing except pile it on.
Quality products were manufactured overseas, shipped here, transported across the nation, and sold at lower prices than goods produced here. Even when those products had tariffs on them.
The trade war was on. Our government cringed in its fox hole. Then, in an act of raw reactionary cowardice, it turned its weapons of mass economic destruction on our own country. Government kept making it harder on American businesses and manufacturers. In the current environment no sane person would open or expand manufacturing or any other for profit entity.
The Obama administration, and the Democrats, continually bash businesses as evil greedy polluters, and social pariahs. Now they demand those malefactors create jobs? As if they owe some allegiance for the government’s perfidy?
The president supposedly demanded a review of regulatory agencies in an effort to scrap useless, redundant, or conflicting regulations. Where are the results? More talk and no action. If the agencies did start scrapping or modifying regulations they would need less employees. Can’t have that, can we?
The biggest impediment to a roaring economy and job creation is the United States government. It is time for hope and change. Change we can believe in. If this administration and Congress do nothing in the next few months, then it is time to change them like diapers. That is the only hope we have.
Peter Bella is a retired Chicago Police Officer, freelance writer, freelance photographer, and consultant. He likes to be the sharp stick that annoys.
This article is the copyrighted property of the writer and Communities @ WashingtonTimes.com. Written permission must be obtained before reprint in online or print media. REPRINTING TWTC CONTENT WITHOUT PERMISSION AND/OR PAYMENT IS THEFT AND PUNISHABLE BY LAW.