Tuesday, January 12, 2010

Incentives For Creating Jobs

Left-leaning politicians and their economist advisers have no idea how to create jobs. Their training, experience and inclination work against such effort.

Jobs as a rule do not come from the government creating a post in a government office, or handing out a pick, shovel or hammer for a construction project. They come from real work demand of consumers. When the demand is not there, the job can never be viable or stable.

Incentives in the form of one-time tax credits are not valid inducements. Politicians and economists who cannot even operate a pushcart never learn this. True incentives come from permanent tax cuts.

To assist job incentives, there must also be minimal fiddling, causing higher costs for employed workers, on wages, fringe allotments, or threats of additional business licensing fees. And no veiled or actual increased taxation on income.

Psychological disincentives always are the culprits in destroying real job formation, a fact left-leaning politicians and their economist advisers will never learn, or they will lose their credentials.

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