An Economic Reality Check

CEO David Siegal has emailed his employees and more or less told them that there will be lay-offs if Obama is re-elected.  For taxes and other costs of business have and would become so bad under Obama that working, hiring, and taking risks just isn’t worth it to him:

Obviously, our present government believes that taking my money is the right economic stimulus for this country. The fact is, if I deducted 50% of your paycheck you'd quit and you wouldn't work here. I mean, why should you? Who wants to get rewarded only 50% of their hard work? Well, that's what happens to me.

Business is at the heart of America and always has been. To restart it, you must stimulate business, not kill it. However, the power brokers in Washington believe redistributing wealth is the essential driver of the American economic engine. Nothing could be further from the truth and this is the type of change they want.

  

So where am I going with all this? It's quite simple. If any new taxes are levied on me, or my company, as our current President plans, I will have no choice but to reduce the size of this company. Rather than grow this company I will be forced to cut back. This means fewer jobs, less benefits and certainly less opportunity for everyone. . . .

You see, I can no longer support a system that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, so will your opportunities. If that happens, you can find me in the Caribbean sitting on the beach, under a palm tree, retired, and with no employees to worry about.

That may sound mean.  He (along with yours truly) is more blunt than most.  But he is not alone.  There are a lot of Americans who can say with the Atlas Shrugged II trailer, “I will not be a slave.”  If you tax job creators at rates of 40%, 50% or more, that is nothing less than tax slavery.  Why take the risks and work hard if half or more of the profits of success are taxed away?  Lose, you lose; win, you only half win – that’s a sucker’s game.

And why take risks and do the things that create jobs if you think the economy is going down?  That bogus 7.8% unemployment number aside, there are numerous indicators that we are about to slip back into recession.  Just this morning, Cummins Engine announced that they expect “to reduce its workforce by between 1000 and 1500 people by the end of the year.” (And as I type this, the Jolts Survey on job openings is out and is virtually unchanged.)

My personal business is very small.  But if Obama is re-elected, I will act on the assumption that America is going to Hell.  For I am convinced it will under more Obama.  And what I intend will not help the U. S. economy (except hopefully to conserve principal to invest if and when things get better one day).  If the United States is intent on going to Hell, I do not intend to go with it.  And, again, I am not alone.

Sorry if this is not cheerful and flag waving.  But a reality check is needful here.  I, David Siegel, and countless others would much rather make economic choices that help the economy and help it soon.  But if the electorate of this country vote to go to economic Hell and turn investors and businesspeople into tax slaves, we will adjust our economic choices accordingly.  And that will contribute to tipping this country back into recession, if not worse.