The grim May employment report, only 69,000 nonfarm jobs, is the third consecutive subpar tally, replete with downward revisions for the two prior months. It's a devastating number for the American economy. The Obama "Keynesian" government-spending model has proved to be a complete failure.
President Barack Obama doesn't seem to understand businesses create jobs. And firms have to be profitable in order to hire. Yet the president's rhetoric is degrading the importance of profits. Without profits, businesses can't expand. And if they don't expand, they can't hire. And if they don't have profitable rates of return, they won't attract new capital for investment.
History tells us tax cuts result in economic recovery and actually increase tax revenue. Extending the Bush tax cuts would stop the economic and job slide, reestablish certainty and spur economic-growth incentives.
But instead of extending the tax cuts expiring the end of 2012, the president wants to raise marginal tax rates on upper-income earners (many of whom are small business owners), capital gains, dividends, estates and many successful corporations.
A business tax cut would help enormously, but it's nowhere in sight.
Benedict Frederick, Jr., PasadenaCopyright © 2015, The Baltimore Sun