Obama’s “Glimmer of Hope” – What Must Be Done?

On Friday, April 10, President Obama declared that he could see a “glimmer of hope” for the US economy. This comment came after a day of encouraging data on trade and unemployment. He cited improvements in small business financing and a rise in mortgage refinancing as one of the reasons for his optimism. He said that “whatever we do must ultimately translate into economic growth and jobs.” 

What can President Obama do to “generate economic growth and jobs?”

First, he should recognize that businesses create most of the jobs in the US.  Businesses need two things to thrive. The first is money to purchase and make goods or services that they sell. The second is customers who can purchase those goods and services.

In order to provide money to businesses, he should limit the income tax on businesses. Money that businesses pay in the form of income taxes could be used to make more products or produce more services. When this happens, jobs are created.

Many feel it would be wise to reduce the amount of regulation for businesses to an absolute minimum. Complying with some government regulations requires cash and manpower that could be used to produce goods and services.

It is also important to reduce the amount of taxes that people must pay. Taxes require consumer money that could be used to buy goods and services. If people buy goods and services, businesses must hire people to produce those goods and services. Thus, jobs are created.

These three simple steps would do much to get the economy of the United States moving again. If President Obama takes these steps, the glimmer of hope in the tunnel of this depression will hopefully soon become a bright light guiding us into the future.

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