I’m still catching up on some interesting articles and such over the past week.
On August 30th, Henry Unger at the AJC wrote an interesting piece: UPS chief: D.C. politics gets in way of job creation.
CEO Scott Davis provides his own relatively simple blueprint of policies that would get corporations spending some of the huge piles of cash they have in reserve.
So, Mr. Davis, is uncertainty standing in the way of putting people back to work, or is insufficient demand the culprit?
Turns out, he said, itâ€™s both. Weâ€™re in a pickle.
â€œSupply and demand should drive the economy more than anything,â€ he said. But, he added, companies â€œwant to understand what the world is going to be likeâ€ before investing in new jobs.
What would tip the balance to hire more workers?
â€œIâ€™m a big believer in simplifying the tax code,â€ Davis said. â€œGet rid of deductions.â€ And combine that with lower rates and tax credits to get more people hired.
Davis also believes the federal government should spend more on infrastructure â€” roads, rail and ports.
And heâ€™s fed up with the long delays in passing free-trade agreements with South Korea, Colombia and Panama.
â€œWe desperately need to add jobs in this country,â€ he said. â€œYou need to get exports going to reduce unemployment.â€
Most importantly, he said, more common sense and civility are needed in Washington to deal with long-term issues, such as the $14.7 trillion debt.
â€œThe polarization is whatâ€™s getting us now,â€ Davis said. â€œWhat happened to the middle? Both sides have to give.â€
I’ll note that President and Obama have already put some amazing offers on the table — Obama has already given. He had offered a deal of better than 3:1 spending cuts vs. revenue increases through the tax code. He has offered longterm cuts to both Social Security and Medicare — the two biggest budget lines impacting America’s future.