The political conventions have passed, the August jobs report is out, and many Americans are said to be “giving up hope.”
So how can we jumpstart our greatest engine of economic growth – the American small business market – and get our economy growing again?
Regardless of which presidential candidate wins this November, in 2013 Americans will have to focus on saving, and expanding, the small business marketplace. The sector of our economy that makes up nearly 60% of the entire American private sector workforce, and creates between 60 and 80% of all new jobs, has been under attack over the past few years by politicians who have created lots of bad laws.
And if Americans are serious about expanding actual employment (rather than merely expanding government welfare and entitlement programs), then we will have to make better choices at the ballot box, and hold our elected leaders responsible for making serious changes. To start, let’s consider consider this harsh reality: the so-called “fiscal cliff” is real, and President Obama’s proposed solution to it is potentially lethal.
Under current federal law, both income tax rates and Social Security tax rates are set to rise dramatically on January 1st of 2013. Along with these tax increases, a dramatic reduction in government services will take hold at the same time.
This confluence of private citizens having more of their money taken away (higher taxes), and a reduction of government services (which means that private citizens will have to fill the gap and spend more of their own money) is expected to trigger a new recession next year. As a means of preventing a “double dip,” both Republicans and Democrats in the Congress have proposed that taxation rates be frozen where they are at, and held steady in 2013.
But President Obama has insisted that taxes should be raised on so-called “rich people” next year, and has refused to do what most economists and many members of his party have said is the one thing that could save us from another downturn.
And with the President polling as well as he is, it seems apparent that millions of Americans are far more excited about his “make the rich pay” rhetoric than they are aware of the consequences of his proposals. Obama supporters may get their wish in November, but it will come at a painful price – a price that all of us will pay.
Austin Hill is an Author, Consultant, and Host of "Austin Hill's Big World of Small Business," a syndicated talk show about small business ownership and entrepreneurship. He is Co-Author of the new release "The Virtues Of Capitalism: A Moral Case For Free Markets." , Author of "White House Confidential: The Little Book Of Weird Presidential History," and a frequent guest host for Washington, DC's 105.9 WMAL Talk Radio.