Rush discusses Payroll Tax Holiday Idea Mosler developed in 2008.

[ 0 ] July 8, 2010 |

July 08, 2010 from www.rushlimbaugh.com

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RUSH: Here’s the story on the Business Insider: “Young Americans Learn That Trying To Find Work Is Pointless — While the U.S. has experienced some job creation during the rebound so far –” there’s no rebound and there’s no job creation. At any rate, “Unemployment for America’s youngest job seekers continues to get worse, not even slightly better. That’s because the new jobs of today aren’t open to them, according to a study called ‘Unemployment Among Young Workers’ by the U.S. Congress Joint Economic Committee: ‘Employers added over half a million jobs in the last four months, yet the unemployment rate for young workers reached a record 19.6 percent in April 2010, the highest level for this age group since the Bureau of Labor Statistics began tracking unemployment in 1947… The youngest workers (16 to 17 years) experience the highest rates of unemployment. The unemployment rate for 16 to 17 year olds was 29 percent in April.’

“One reason explained in the report is that older workers are now taking jobs previously reserved for the youngest due to a dearth of opportunities. Another is that industries which employed young workers were hit disproportionately hard during the downturn, such as hospitality and retail. Education is also now more important than ever in securing an available job, with higher education massively reducing one’s probability of being unemployed.” Now, here’s the dirty little secret. This is why you listen to this program, because I, ladies and gentlemen, have one of the most productive fertile memories that you will find not just in modern media but throughout our society. What is the big deal? What is the problem?

Do you remember both the first lady, Michelle Obama and Barack Obama, the president himself starting in the campaign and even after they were immaculated, they’ve been telling college students to forget working in the private sector anyway, don’t go to these law firms, don’t go to Wall Street firms, involve yourself in the health care industry. She told a woman in Zanesville, Ohio — Cookie, this is the campaign, sometime in 2008. I don’t know if this is an audio sound bite or not, but if it was it’s going to be in our archives. She told a woman, a nurse in Zanesville, Ohio, don’t leave here, don’t leave town, don’t go work for one of those big Wall Street firms, don’t go to work for a law firm, that’s not what you need to do. You need to work in government; you need to work in service. So now Obama’s fixed it so they don’t have a choice, and they’re talking about it at the Aspen Institute this week.

There’s no incentive to work, none whatsoever. Unemployment compensation, extensions routinely occur. It was only in print. Cookie tells me we don’t have any audio of that, it was only in print, we don’t have audio of Michelle telling the woman in Zanesville, Ohio, to screw it, stay where you are. By the way, Chelsea Clinton is getting married on July 31st. You might be saying, “Well, what’s the big deal?” Well, she’s marrying a guy who works at Goldman Sachs, Marc Mezvinsky, the son of Marjorie Margolies-Mezvinsky. So it’s okay for the Clintons’ daughter to marry somebody going to work at one of those Wall Street firms but Michelle (My Belle) and Barack Obama, no, no, no, no, don’t mess with it. We’re going to find the stories in the archives. If you’re a regular listener to the program you know we’ve talked about it. I’m not making it up. So what’s the problem here? Young Americans learn that trying to find work is pointless. This president and his wife told them not to, that it’s a new day in America.

Arthur Laffer, Wall Street Journal: “Unemployment Benefits Aren’t Stimulus — The current debate over extending and increasing federal unemployment benefits encapsulates the disagreement between the Democrats in power in Washington and their Republican opponents. What the consequences will be of raising unemployment benefits in today’s depressed economy is at issue. The most obvious argument against extending or raising unemployment benefits is that it will make being unemployed either more attractive or less unattractive, and thereby lead to higher unemployment. Empirical research supports this view. The Democratic retort is that the economy today is so different from the past that we have to suspend our traditional understanding of economics. With five job seekers for every job opening, the unemployed are desperate for work and increasing unemployment benefits will have very little if any disincentive effect. This view hinges on a total change in employee behavior from ‘normal’ times to the current period of ‘the Great Recession.'”

Now, Mr. Laffer does not point out that the Obama administration and First Lady Michelle (My Belle) Obama actively encouraged people not to seek employment anymore, to go into the public sector, go into service, give something back, don’t be focused on earning money like Michelle was at the no-show job at the hospital in Chicago. Mr. Laffer: “On the face of it, the idea that higher unemployment benefits won’t lead to more unemployment doesn’t make much sense. Imagine what the unemployment rate would look like if unemployment benefits were universally $150,000 per year. My guess is we’d have a heck of a lot more unemployment. Common sense and personal experience indicate higher unemployment benefits will make unemployment less unattractive and thereby increase unemployment even in the Great Recession.” And there’s a chart that he cites nearby in the story. It shows that “since the 1970s there’s been a close correlation between increased unemployment benefits and an increase in the unemployment rate. Those who argue that things are different today don’t have the data to back up their claims.”

This is all by design. The sad truth here is that nobody’s upset about this in the administration. They have created the circumstances whereby this is happening: extended unemployment benefits, no private sector jobs and an encouragement not to go work. Get used to the US being in decline. Get used to fact that the US is no longer going to be the engine of economic growth, either here or in the world. Here’s how Mr. Laffer concludes his piece: “My suggestion would have been to take all $3.6 trillion and declare a federal tax holiday for 18 months. No income tax, no corporate profits tax, no capital gains tax, no estate tax, no payroll tax (FICA) either employee or employer, no Medicare or Medicaid taxes, no federal excise taxes, no tariffs, no federal taxes at all, which would have reduced federal revenues by $2.4 trillion annually. Can you imagine where employment would be today? How does a 2.5% unemployment rate sound?”

His point is that we’ve spent $3.6 trillion here on stimulus and bailouts and all these other things, and we got nothing for it, zilch. His alternative, declare a federal tax holiday, if you’re gonna go in debt by $3.6 trillion, why don’t you go in debt only $2.4 trillion and not tax anybody anything federally for a year, and then get out of the way and see what happens. And he’s dead-on right. It will never happen. Not with Obama. That kind of evidence, that taxes deter growth, that taxes deter expansion, something that a leftist, a statist, an authoritarian would never, ever permit. And remember the government does not create resources. All it can do is redistribute resources because for everyone who has been given something, there’s somebody who has that something taken away. And that is what’s happening, and that is by design.

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Category: Economics, Politics