Taxes and Jobs
The hot button issue in the US presidential election is the economy. The Republican philosophy is to offer more tax breaks and hope that the lower tax rate would automatically create a lower cost base resulting in more jobs. At face value, it looks very simple – but it is not. There is more to business than just tax cuts. If that were true, Dubai’s tax, duty free zones would be the place were all the business end up. Everything from a meat packer to the financial instituitions. However, what we see is only the latter and not the former. Why?
One of the most important things businesses take into account is the target market. Being closer to the market helps. So why has manufacturing jobs in the US vanished? Blame the American consumer! In their drive for cheaper goods, they ignored the quality and drove in hordes to big retailers like Wal-Mart who specialize in procuring the products from places were labour standards are not maintained, ethics are at the bottom of the list. Unless the mom and pop business stores are were the customers flock, I don’t see the trend reverse.
Are the Democrats angels then? Absolutely not. While talent is always valued, so is hard work. Labour activism in Western nations have crossed the line and now it has become more difficult for the employers to even expect some flexibility on part of employees. At the end of the day, businesses want people who view them favourably. Minimum wages should be kept at a level that keeps the interests of both sides.
Everyone’s skills gets outdated fairly quickly these days. Even more so for the manufacturing sectors. At a time when American children should be working hard at school, priority is given to frivolous things like cheer leading, proms etc. Nothing wrong with giving higher priority for sports but basic skills should also be taken care of. I was dumb struck when I saw that there is a program in MTv for berating and abusing one’s mom – Yo Mama !! Now that is a clear problem.
Finally, it is stupid of the rich (by Indian standards, I am one too by virtue of my pay being > 500,000) to think that they *got there only because of* themselves! I don’t mind paying more taxes because I realize that as a successful member of the society, I should help others succeed too. When there is less disparity in incomes, crime rates, poverty are low and higher aspects of life like arts can be focused on.
And yes, I agree with the Democractic principle of trickle up prosperity than the Republican trickle down principle. Sen. McCain, you got it wrong!
