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This blog will never resonate with those that believe that if we would just light the cigars of the corporate CEOs, refresh their drink, furnish them with a $5.00 an hour chauffeur, reduce their taxes to near zero, and disband all those pesky unions; they would magically go out and hire millions of new workers. That is the formula for “trickledown economics."

Today's fortune 500 businesses are highly profitable because their technology allows them to get by with fewer workers and the jobs they are adding are all overseas-where the growth is. Don't take my word for it; keep a watch out for their third quarter earnings report. Good for them, it means that my wife and I will maintain a pretty good portfolio and I don't really mind the increase in capital gains taxes, I will pay when I cash out. Workers are getting out of the market and I will soon follow, unless the government does something about the “high frequency traders" who are using Cray computers to manipulate the market. I do not like a system where computers can make thousands of trades in less than a second. I can see where a computer malfunction could cause the stock market to crash. That's what happens, when we let GREED, rule.

Small businesses are not hiring because of lack of economic activity and loans for expansion are hard to get. Consumers are paying off debts and saving more because they don't have a whole lot of confidence in our economy. Every dollar they save reduces $1.00 of economic activity. The savings rate before the financial crisis was~1%; right now it's about 5-6%... That's 5% less economic activity since the financial crisis.

I certainly do not blame the corporations or small business CEOs for trying to get more tax breaks or sending their jobs overseas because they answer to their stockholders. Many of them will say uncertainty is the reason for not hiring. And they put out a laundry list like taxation, Health Care benefits and regulations. I notice that they never mention lobbyist fees or CEO pay. Check out the CEO/work pay for 2009... You will notice that under republican administrations that figure skyrocketed. In 2001, the ratio of CEO-to-worker pay hit a peak of 525-to-1. Truth is, many of the jobs lost, were in the construction and financial firms connected to real estate. That's the real uncertainty because, until housing demand increases, all the tax breaks, regulations, and talking points will not matter.

I always get a laugh when I read a Walter Williams column. This past week, he recycled that old myth that taxing corporations is a tax on consumer. That's a just another laissez-faire argument...."Laissez-faire is an economic doctrine that opposes governmental regulation of, or interference in commerce beyond the minimum necessary for a free-enterprise system to operate according to its own economic laws....." Those that believe in that system will use the same argument against trade unions, worker benefits, minimum wage, EPA regulations or anything else that affects the bottom line.

http://www.answers.com/topic/laissez-faire

I don't believe we can adopt a one size fits all economic policy because "austerity" does not work well in a deep recession and Keynesian shouldn't be considered in prosperous times. As Kenny Rogers used to say" We got to know when the hold' em and know when to fold them." Many will say that we should always try to reduce the deficit to zero. I don't follow that logic because I might favor running a small deficit in wartime or, when I feel like the opposition won't follow through on a project such as alternative fuels. That's what usually happens at the state level. One party will promise to reduce property taxes to get elected; they will follow through. The winning party will instead raise fees. The budget gets out of control; services are cut, and the voters replace them with the opposition party. The opposition party has to repair the neglected infrastructure, restore some services and have to raise the property tax . It becomes an endless cycle.

The business community, lobbyist, and politicians know the reason for high unemployment but they don't want to address the problem because then, they have to come up with a solution. The first solution might not work, people will get anxious, they will get blamed, and we go back to the old policies that have failed us in the past. I hate to say this, because I disagree with all his policies, but the last president to bring us together was Ronald Reagan. The backroom deals with Tip O'Neill kept the opposition party at bay; allowing the country to follow his leadership. I don't see where people will listen to a “morning in America" speech and come away saying" We are gonna be alright," anytime in the next decade or so. I believe, uniting the country, is the number one role of the chief executive.

**Oct. 18,2010 issue Time Magazine...article by Zachary Karabell titled "The Curious Capitalist"