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Thursday, January 6, 2011


As the New Year and a new congress is upon us small and medium sized businesses have ramped up their hiring. In fact December saw the highest one month private job growth since it started being tracked. The main factor I believe and has been noted elsewhere was the extension of the Bush tax cuts. I like to think of it as stability. The Federal government held hostage the unemployed while waiting until the last moment to determine the 2011 tax laws.
Not QE1 or QE2, which if my memory serves me cost 1.4 trillion and was handed out to big business, but at a cost of 800 billion (over 2 years) extension to “we the people”. Had this been done sooner we would have seen a recovery in mid 2010, and maybe the democrats would have held onto the house. They prefer to control your money and give it out as they see fit instead of allowing you to use your money as you see it.
The thing is if more people are employed then the Feds can bring in more tax dollars, which, shockingly, would bring down the deficit and help stabilize the economy through the use of free market principles. When free market principles are used to spend money, more money is made. When money is spent by the federal government they may do so on programs that doesn’t make sense, essentially wasting the money and making it even harder for those who can increase the standard of living in the US to do so.
In 2012, an election year, our small and medium business the engine of our economy will again be faced with the same economic tax uncertainty. Around the world it has proven “progressive” policies do not work. For 200 year America showed free market policies did, unless we return to those policies we will be face with the same economic problems Europe sees today.

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