Attracting Jobs to the USA

We’ve all heard the story: John lost his job when the company moved south of the border; Sally's corporation outsourced her position to a partner in the Far East.

How can American companies can compete in the long-run, with higher labor costs and stricter environmental regulations than other countries, and with a tax code that penalizes success? It’s a fair question, even though, to date, the problem of job “loss” has been overblown. (Sure, jobs are “lost,” but they are just as quickly replaced by other types of jobs, in most cases. That’s why the “unemployment rate” has remained roughly the same for many years.)

However, for all the talk in the media about job “loss,” few solutions are set forward other than more government hand-holding for those who’ve lost a job – no one addresses the root issues (Why were the jobs were lost in the first place? Is it good or bad for the economy that this happened? What the best way to build and keep quality businesses?).

 

Even better than job loss prevention, Americans ought to be interested in quality job attraction. 

I have an idea: let’s lay out a welcome mat for businesses large and small at the doorstep of America. 

I’m talking about common sense measures to make business more pleasant, profitable, and productive. On this point, I have three suggestions for all those politicians who claim to care, followed by two suggestions for “the rest of us”:

 

1. Ask businesses to submit lists of regulations that they’ve found to be excessive or that make profit-making difficult. Ask them to suggest revisions or overhauls to these rules, then appoint a Congressional panel to review and approve changes in regulations. (The same process could occur at a state level.)

 

2. Phase out taxes on business. This would give our businesses a competitive edge on foreign markets, lowering our costs of production by a substantial percentage. Even more, it would save American businesses billions of dollars in tax compliance costs – a whole lot of wealth that could go into producing things, instead of pushing papers.

 

Remember, we individuals are paying the business tax anyway when we buy products (the cost of taxes is built into the prices of the goods we buy). Why not make it simple, and just tax individuals? Leave businesses out of the equation, and it’s a sure bet that corporations will be flocking to set up their headquarters and factories in the USA. Yes, this would mean a sort of tax “increase” on individuals – but remember, with the prices of goods coming down and with businesses being more profitable here and abroad, we’d all be making more money and paying less for our lifestyles.

Side benefit: if individuals were paying all taxes directly (instead of having them hidden in the costs of goods and services), we’d see how much Washington is really taking from us – and that would result in the government being more accountable for its spending.  Likely result: less tax burden on everybody, and less government waste. Meanwhile, with the influx of businesses coming to and being born in America, more Americans would make more money, both the people and their government would be a whole lot richer. Seems like a win-win to me.

 

3. Pass state and/or national laws that would eliminate compulsory union membership. While unions have and often do provide a valuable tool for workers to negotiate with major employers, they also can make profitable business difficult, sacrificing the good of the many for the often inflated demands of the few (which, ironically, is precisely the opposite of what unions are designed to do).

I’m not suggesting we dismantle unions, but that we make it possible for workers to opt-out of membership if they so choose. (If a particular union really is a “good deal,” then union bosses would have nothing to fear from making it optional.) Some workers might prefer to be rewarded personally because of their productivity, rather than have “protection” within the union. Unionized workers would have to compete with non-union workers to provide the best and most productive labor. And that, obviously, would make manufacturing in America a far more attractive proposition to investors.

And some suggestions for the rest of us:

 

1. Find and elect pro-business, low-tax politicians who will ensure the welcome mat never again leaves the doorstep of the American economy. For too long, the voices of “tax the rich more” (read: milk the business owners) have shouted down more sane approaches to economic policy. Let’s create a system where the job producers are set free to accomplish their mission, and where job creators are not deterred by a daunting list of rules, regulations and taxes. Instead of pitting “businesses” against “individuals” (management versus labor, rich versus poor, etc.), let’s recognize that we’re all in this together, and when the government gets itself out of the way, we can all make more, achieve more, produce more and enjoy more. Refuse to give your vote to a candidate that uses “class warfare rhetoric” and thinks the solution to all problems is raising taxes on successful Americans.

2. Be an innovator yourself. Job security isn’t something you should ask the government to provide for you – your job is your responsibility – and yours alone. Consider ways to make yourself a more productive worker. Seek opportunities to improve yourself through education and experience. Try new things, and don’t let the fear of failure stop you from walking the path of success. These qualities embedded in the hearts of American workers have kept America’s economy humming – and in the future, these same qualities will guarantee not just jobs for Americans, but American leadership in the world.

 

Comments

[Joshua]

Intersting post. A few comments:

"1. Ask businesses to submit lists of regulations that they’ve found to be excessive or that make profit-making difficult."

This would be an absolute bureaucratic nightmare. In fact, I can't even think of the words to describe the trainwreck this would become. That being said, I don't even think it's necessary as I think the government is quite aware of what policies and laws are bad for business.

"Yes, this would mean a sort of tax “increase” on individuals – but remember, with the prices of goods coming down and with businesses being more profitable here and abroad, we’d all be making more money and paying less for our lifestyles."

Dream on. It's highly unlikely that the cost of goods would go down to nearly the same extent as the tax savings. And even if the business became more profitable and passed some of it along to their employees, those who already earn a lot would earn even more and those who don't earn enough wouldn't see enough to make it worthwhile. Before you call me a democrat, I'm not. You're just living in a utopian worldview if you really think business would pass along the savings. It wouldn't be responsible to their shareholders if they did.
Again, I'm in favour of cutting business taxes to stimulate the economy, but the elimination of them simply wouldn't be worthwhile to the consumer.

Your third point is excellent. Unions are not as vital as they used to be.

"1. Find and elect pro-business, low-tax politicians who will ensure the welcome mat never again leaves the doorstep of the American economy."

Let me know when you find one. But what I think is even more important, is ensuring this politician also treats the global economy fairly, by allowing capitalism to thrive even if it's not immediately beneficial to the US. Your government has butted in WAY too many times with unfair tarriffs, taxes, etc. It's hypocritical at best.

One final point that I would add. Get rid of class warfare. It is tearing your country to shreds.

Good thoughts though...