President Barack Obama gave sound advice on Monday in a speech to the U.S. Chamber of Commerce. He offered that the government must work to make America a “better place to do business,” and at the same time, businesses must “do for America.”
Hopefully the President realizes that if the government does its part, American businesses will most certainly do the same.
President Obama asked that U.S. businesses invest in this nation and hire American workers. It is a great soundbite and certainly makes economical sense. But for these businesses to adhere to the wishes of the President, the government first has to get out of the way and let the free market reign. That is not always easy for our politicians to do.
Competition and economic freedom drive the American marketplace. It has always been that way. Companies and businesses that improve the lives of Americans succeed. Those that don't usually fail. Bill Gates sold software that greatly improved American's productivity. He has certainly invested in America. Apple developed the iPhone and revolutionized the cell phone industry. They have invested in America. Other companies have failed in endeavors and have closed up shop. It is the beauty of a free market.
The U.S. government can control the job creation market by simply staying out of the game. Businesses will hire workers when they have a need for workers. It comes from a confidence in the economy and an ability to expand. The confidence is slowly coming back, but expansion abilities are still waning. Banks used to make loans to businesses that sought to grow. That is because banks had to make loans to survive. Since the federal bailout of the banking industry — which included monies to banks that were healthy — the industry has changed its business model and tightened its collective belt, making it harder for businesses to get affordable loans for growth.
Until that changes, it may be hard for American businesses to fully meet the President's wishes.
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