On Thursday June 9, 2011, Andy Puzder appeared on Fox’s Your World with Neil Cavuto. Andy discussed 5 things that Obama could do to help businesses create jobs.
Puzder stated that businesses are sitting on about $2 Trillion. For these businesses to invest that money in job creating growth, there must be a level of positive certainty about the business climate. Most businesses or entrepreneurs look to recover their investments in 5 years. As such, investors generally want a five year business plan showing a return sufficient to justify the investment. At this time: (1) business only know what the applicable tax rates will be for a two year period and the President is telling them that he then wants to raise those rates; (2) no one can figure out what their health care costs will be because the ObamaCare statute is so complex and what they do know they don’t like; (3) no one is comfortable about energy costs because we lack an economically realistic energy policy and the EPA continues to pursue efforts such as regulating carbon emissions which will only increase energy costs; (4) labor costs are difficult to project as the administration and the NLRB continue to pursue very union friendly policies; and, (5) businesses face high costs to comply with a byzantine regulatory structure that only seems to get more complex despite the administration’s protestations to the contrary. Businesses and entrepreneurs will not invest if they are unable to create a forecast demonstrating that they will make a profit. They are unable to create such a forecast when there is uncertainty about taxes, health care costs, energy and/or labor costs and when there is every indication that such costs will increase given the current administration’s economic policies. To create jobs and prosperity, the Obama administration must first create positive certainty in the business environment.
Read more about The Certainty Factor in Andy’s book Job Creation: How it Really Works and why Government Doesn’t Get It. Buy on Amazon in print or Kindle here