The United States is experiencing her highest national unemployment rate since the early 1980’s. Back in 1981, in order to stimulate the creation of jobs in the private sector, President Reagan encouraged Congress to pass the Kemp-Roth Job Creation Act. Today, the Obama administration is doing nothing of the sort.
Most Americans are not even aware that, from 1999 through 2009, we had zero growth in private-sector employment. In fact, we lost more than a million private-sector jobs in those years. The only growth in employment was in government jobs.
During that same period, we lost one third of our U.S. manufacturing base—more than 5.5 million American manufacturing jobs have either disappeared or been shipped overseas. That is the logical result of a business tax system that turns the principles of a sound economy upside down.
The “new capitalism” we are living under is a far cry from the free-market system that made our economy so strong. Martin Wolf of the Financial Times (June 19, 2007) described the salient features of this “new capitalism”: “We have . . . the triumph of the global over the local, of the speculator over the manager and the financier over the producer.”
Why should our economy be dominated by Wall Street financial engineers and private-equity moguls rather than Main Street producers?
Today, many economists...