By Bob Williams | State Budget Solutions

Bob Williams

President Barack Obama has proposed that job creation can be found in improving public-sector jobs. However, increasing public-sector jobs requires the state and federal government to spend more and borrow more. This is not feasible for states that are facing record deficits and recklessly spending just to keep up.

Instead of continuing to pile on state debt, jobs will be created if the government helps the private sector grow. Strong private-sector job growth will benefit the public, state budgets and the country as a whole. The president can help the private sector grow by removing the fear and uncertainty faced by job creators as a result of the economic policies put into place during this administration.

Private-sector job creators are fearful of their own livelihoods due to a number of things including:  the Bush tax cuts expiring in January 2013; the threat of additional taxes on the job creators; the impact of the national health care law; out of control growth in federal deficits; new financial regulation bills; the potential of card check and cap and trade; proposed new regulations on timber, coal and oil; and the Obama administration’s refusal to approve oil exploration.

The proper role of government is to stabilize taxes and regulations, and then get out of the way as quickly as possible. A sustainable recovery requires:

• Strong corporate profits;
• A balanced budget with drastically reduced government spending;
• Reduced business regulation;
• Across-the-board lower individual and corporate taxes.

These will release the U.S. free enterprise system’s dynamic energy for growth, incentivize entrepreneurship and lead to robust job creation — the key indicator of any economic recovery.

A private sector of unencumbered companies and individuals can — and will — lead the recovery, but they must have a strong degree of certainty about the positive prospects for being creative, innovative, enterprising and profit-seeking.

How many business owners would invest in creating more jobs when the future environment is projected to contain higher tax and interest rates, increased inflation and more government regulation? None. That is why America still has millions of people unemployed.

If, on the other hand, Obama eliminates the fear in the business climate by advocating extending the Bush tax cuts, cutting spending, reducing the federal deficit and being serious about less government regulation into private sector, we would immediately see an expansion of private-sector jobs.

It is now Obama’s turn to work on behalf of small and large business owners around the country. Main Street deserves to have policies in place that allow its businesses to flourish. The benefits will be felt at the local, state and federal level.

Bob Williams, president of State Budget Solutions, is a former Washington state legislator, gubernatorial candidate and auditor with the Government Accountability Office.