Authored by Daniel Lacalle, op-ed via The Epoch Times,
The employment recovery in the United States is as impressive as the collapse due to the lockdowns.
What the United States needs to do to recover jobs and return to real wage growth and the path to full employment is both easy and challenging.
The United States needs to cut red tape and bureaucratic burdens to new business creation, lift regulatory and fiscal burdens that prevent small and medium enterprises from growing into large companies, and maintain an attractive tax system that incentivizes investment, capital repatriation, and supports job creation.
Anyone can understand this. Why is it challenging, then?
In the middle of an election year there are too many misguided proposals from the left demanding higher taxes, more government interventionism, and more regulatory burdens. It seems that many politicians cannot learn from the mistakes of the eurozone.
Higher taxes and more interventionism will not deliver better public services and stronger finances. The eurozone is the proof that higher taxes still drove most countries to historic high levels of debt and unemployment while public services did not improve. Deficit spending is not solved by raising taxes but by cutting unnecessary spending. With a rising tax wedge, growth is weaker, job creation is poorer, and the deficit remains stubbornly high because expenditures rise in growth and crisis periods significantly above receipts.