How Romney Can Bring Jobs Back to America

The Democrats, and especially the leftists, love to complain when some “filthy rich Republican” takes his/her bank accounts, companies and investments over

Romney

seas. It’s always said that if that money were here in the United States, it could be used for children and puppies (or something else emotionally driven). So, how dare they take their money somewhere else in this global economy!

What is never considered or discussed, however, is why the “anti-American” Republican decided to take his/her accounts, companies and investments overseas. We have the highest corporate tax rate in the world among developed nations, making the United States less attractive than Japan and other nations. For major companies, this matters, and can influence where they locate.

An IndustryWeek.com article from 2006 explains why companies outsource jobs oversees. When an executive’s responsibility is to his/her shareholders, the bottom line is the focus. This means that labor has to be the cheapest it can be without foregoing so much quality that the product isn’t functional. Why would an executive pay an employee $10-$20 per hour, or sometimes even $60-$80 per hour, when the same job can be performed for $3 an hour? It doesn’t take much common sense to figure that out, and you’re not anti-American for wanting to give your shareholders the best results.

The regulations are killing job creators. Competitive countries do not have FICA and other taxes (social security, medicare, OSHA, unemployment insurance, etc.) that also increase the cost of an employee – sometimes by 25-30%. On top of that, add benefits. It makes the American employee far more expensive than his/her oversees counterpart. Inc. explains how this is even more harmful to small businesses than larger firms, because the effective rate per employee is higher given that there are more fixed costs in the equation. We also have people who work in licensed industries where they have to pay a fee for a certificate or license to even work. The countries to which we outsource do not have these requirements.

Companies also need the flexibility to increase and decease staff at will. There are so many employment laws in the United States that if you need to downsize you need an attorney to first make sure you are properly handling your lay-offs (causing you to lay off more people to pay your attorney’s fees). In some other countries, they recognize the need for the company to be flexible to meet demands, whether increasing or decreasing. It’s better for some to have a job than none at all.

Furthermore, outsourcing is a viable option for many because the quality of work done oversees is improving, companies are sometimes not required to make the huge capital investments they otherwise would be in America, projects can often be completed more quickly, and the dollars saved can be reinvested back in to the business for its primary activities or distributed to its shareholders. The answer is not to pass laws requiring products to be made in the USA – they will be more expensive to make and therefore more costly to the consumer, and fewer people will be employed. Money doesn’t grow on trees. Democrats always seem to think they can just pass a law and make businesses do something, but there are financial ramifications to law makers’ requirements that simply add more reasons to send additional jobs overseas whenever possible.

Am I promoting an employment environment with anarchy and chaos? Absolutely not. There will always be the need for oversight. But, it’s gotten out of control. If you want to bring the money and the jobs back to America, we have to change our policies to respond to the problems: curtail the unions and their increasing costs, cut corporate taxes, cut taxes on the individuals who own small businesses and create jobs, decrease regulations, and get government out of our way. Do we want to make sure our drinking water is safe? Of course. Do we want to know that the airplane we fly has been inspected and is in good working order? Definitely. However, we cannot continue to have ridiculous regulations and taxes, and expect to be competitive!

If you grasp this, you will also understand why I do not criticize Mitt Romney‘s decisions to invest money or send jobs oversees. Of course, the Romney campaign defies any suggestion that Romney sent jobs oversees, and they have explained that issue. But, even if Romney had outsourced jobs — he had good reason! Our regulations and taxes are completely unreasonable, and in this global economy with options elsewhere, people take them. If anything, Romney should use his business record as an example. He should explain that he has the knowledge and experience to change policies appropriately to bring  jobs back to America — he understands why they left the USA originally! Romney has to turn this back around on Obama and his minions, and make sure it’s clear that Obama-like policies are exactly what is sending jobs oversees.

Certainly, Romney knows more about job creation than a community agitator.

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