On the cover of today’s Wall Street Journal, an article appears profiling President Obama’s Jobs Creation Proposal; the only critical part missing from his proposal is the actual strategy to create jobs.
Tax cuts for small businesses and a zero capital gains tax is wonderful news, and mirrors the Republican-favorite supply-side theory. However, by simply saying here are some incentives to hire people won’t actually get the job done. An analogy I have heard my friend Sam Stovall from S&P say: An idea is saying you are taking a trip to Chicago; A plan is knowing how to get there.
The President needs to focus on credit easing and provide the necessary tools permitting small business owners to borrow again. The small business owner doesn’t have the ability to have a $100 million debt offering; they rely on the ability to get a loan, or even use a credit card. Handcuffing this lending ability is not going to get the jobs making machine rolling again.
One final note, as I understand the President’s “go green” ambitions, I am still very perplexed about how putting solar panels on my roof is going to create jobs. Why is there a focus on saving the world, when we may not even be able to save our own country? It’s wishful thinking that the President is holding back on any new ideas, but if this plan doesn’t work—is there a Plan B?