Boehner says “Businesses are on strike” … we told you so July 21, 2009

Last week, Speaker Boehner spoke about the Obama’s Jobs Plan and the state of the economy”

House Speaker John Boehner said President Barack Obama’s jobs plan would do little to get the economy moving again because “job creators in America are basically on strike.”  Source

Well, we told so … going back to a July 2009 post titled: “Why private sector jobs won’t be coming back any time soon … hint: it’s called passive aggressive resistance.”

Back then, we were saying:

The bottom line: businesses will resist government policies passive aggressively. 

Fewer jobs will get added back than history would suggest, and those that get added back will materialize later than past patterns.  Businesses will add jobs as a last resort rather than trying to build capacity ahead of the economic growth curve. 

Why should companies  increase their costs and  risks any more than is absolutely necessary ?

Companies will continue to off-shore jobs, but will be more clever and clandestine about it, e.g. by vertically disintegrating and simply buying goods and services from 3rd parties.

Given the Administration’s anti-corporate rhetoric, actions, and proposed game-changing rules, I doubt that many CEOs will be taking on added costs and risks to boost the administration.

More likely, they will let unemployment continue to creep up, and will slow roll the process of rehiring. 

Corporate chieftains will sit back and watch the President squirm and spin his “4 million jobs – saved or created”. 

As Rev. Wright would say “the chickens will have come home to roost”. 

Passively aggressive  resistance at its very best.

There’s more in the original post.

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One Response to “Boehner says “Businesses are on strike” … we told you so July 21, 2009”

  1. TK Says:

    Lack of demand seems like a simpler answer. Entrepreneurs are not waiting around for Obama to leave office. Mark Cuban nails it in a recent article:

    “People driven to succeed are driven to succeed. People driven by money are driven by money. People driven to compete, compete. We live in a country that puts an emphasis on achievement. Not just financial achievement. The ability to set goals and achieve them. We celebrate and reward those that accomplish their goals. It is part of the very fabric of what makes this country so amazingly unique…

    Of course none of this is going to stop big companies from arguing that higher taxes impacts job creation. Of course they are going to argue it. The less they pay in taxes, the higher their earnings per share and the greater the value of their stock and options. If a big company needs employees to stay competitive in their industry(s) you better believe they are going to hire that person no matter what it takes. They will find the money some how. Even if it means lowering their political contributions and lobbying costs or bringing in cash held overseas.

    This is a country that competes to win. That is not going to change.

    In fact, follow this logic. Its counter intuitive, but its absolutely true. The higher the tax rate on income the more risks us money chasers have to take in order to hit our number. If you want that number, you are going to go for it. Period, end of story. More risk, more companies started, more people hired.”

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