Jim Macke demonstrated he doesn’t understand the limits of a president in a capitalist economy because he connected economic dots that are not connected. He asserted Barack Obama financed new lower paying jobs by increasing our national debt. No president – Democrat, Republican, liberal, conservative, moderate – has any influence over the wages paid by employers to employees. That’s a function of supply and demand. CEOs and business owners determine wages, and those lower paying jobs are here to stay. Unfortunately, they also are the harbinger of a permanent decline in the size of the middle class, which no president can reverse.
Business school 101: the principle role of business managers in a capitalist economy is to increase shareholder wealth, and they do that by increasing profits. Those lower paying jobs increase corporate profits and shareholder wealth. CEOs of publicly traded corporations get the preponderance of their compensation through stock options that are taxed at a lower rate than their executive salary. Corporate tax breaks also increase shareholder wealth because they do not trickle down to employee wages.
U.S. presidents only create jobs through government spending programs, but there’s no correlation to wages paid for those jobs. Presidents increase our national debt each year when signing a Congressional budget containing deficit spending and they exacerbate national debt whenever they increase government spending or enact tax cuts without corresponding spending cuts. Macke justifiably railed against our uncontrollable national debt, but his attribution to Obama increasing debt to create lower paying jobs was incorrect.
David Vail, O’Fallon
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