WHY OBAMA CAN'T COME OUT SWINGING
You often hear it said that small businesses create most new jobs in America. I recall Jack Welch debunking that notion, pointing out that the impetus for most of small business job creation comes from contracts issued by big business, which find it advantageous to outsource work to small businesses, typically unburdened by the overhead of and expensive benefits packages offered in large corporations. The bottom line is big business is the principal source of new job creation in the U.S..
Currently big corporations are sitting on a reported $2 trillion in idle cash because consumers overburdened by debt are preoccupied with de-leveraging and therefore spending conservatively, giving big business little incentive to invest that idle cash in additional productive capacity. Accordingly, further tax breaks for corporations advocated by Republicans will do nothing to stimulate job growth, since big business' reluctance to hire is attributable to weak demand, not a lack of cash. However, lower corporate tax rates will provide increased after-tax profits to corporations on ongoing business as the source of additional c-suite compensation and dividends -- just another way for the rich to get richer while the rest either mark time or lag further behind.
Unfortunately, President Obama is unable to make this self-evident argument because he, like all Republicans and many Democrats, depends on Corporate America for campaign funding. So the band plays on, the rich keep getting stupendously richer, the poor desperately poorer, and the middle class marks time, as they have ever since Reagan sold America on Voodoo Economics.
Sadly, Republicans and Democrats today are opposite wings of the same bird, the head of which is the ruling corporate elite. While for the poor and middle class Obama and Democrats remain the better choice, their dependence on corporate largesse prevents them from effectively countering the Republican agenda in the service of the corporate rich.
The only hope for restoring government to the service of the people is to embrace a new political model bypassing Big Money and TV. Many suggest prohibiting private funding of political campaigns, but that will never happen as long as the present crew of politicians remain in power, because private funding keeps them in office, making it unlikely they will kill the goose that lays the golden egg.
I've proposed such an alternative political model on my blog: "OccupyTheaters"http://cassandra-chronicles.blogspot.com/2012/03/occupy-theaters.htmland in my book: The Predicament (www.the-predicament.com).