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Mitch Berg’s attempt to educate Dave Mindeman about economics is a hopeless situation, though it is fun watching. Mitch tried explaining that Mindeman’s “Blizzard of facts” didn’t put things in context. Here’s part of Mr. Mindeman’s argument that the economy does better under Democrats’ leadership than under the GOP:

And just in case Mr. Berg wants to highlight Obama’s tenure….

A. Corporate profits have surged an average of 51.8% under Obama, the best out of any stretch of party control since 1933, S&P said.

Mitch was right in highlighting this:

Except it’s not because business is banging along on eight cylinders. It’s because businesses are sitting on their cash. They’re laying off workers and outsourcing jobs. They are not investing in new plants, new products and new hires.

Mitch’s observation is important because it highlights the fact that businesses aren’t expanding because President Obama’s regulatory policies (Dodd-Frank, the PPACA) discourage long-term economic growth. Rather than admitting that Mitch has a legitimate point, Mr. Mindeman threw this hissy fit:

So these are the “job creators”? They would rather sit on their wealth and tank the economy than move the country forward?

Glad the Republicans take advice from these characters.

The insinuation is that business is waiting for a better “business climate”. And what is that exactly? Is there a need for more workers? Unemployment says no. Better tax rates? If they have all this cash, why would they need tax cuts?

That’s proof that Mr. Mindeman isn’t an expert in connecting economic dots. That’s why I’m putting this post together. In the spirit of bipartisanship, I’ll answer Mindeman’s questions:

The insinuation is that business is waiting for a better “business climate”. And what is that exactly?

The best explanation I have for what constitutes a pro-growth business climate is a period in time when entrepreneurs know that regulations will be relatively stable, that labor costs will be reasonable and the opportunity to make profits is good. Right now, entrepreneurs know that President Obama’s administration is a regulation-making nightmare.

Entrepreneurs have said forthrightly that they don’t know if they’ll be complying with regulations today but might be out of compliance a week from now. Why would a business hire additional people if he isn’t certain about what regulations he has to comply with?

Better tax rates? If they have all this cash, why would they need tax cuts?

Nobody’s talking about tax cuts at this point. What’s been proposed is eliminating corporate welfare, broadening the tax base in exchange for lower rates and tax simplification.

So these are the “job creators”? They would rather sit on their wealth and tank the economy than move the country forward?

First, entrepreneurs can’t wait to create jobs and wealth. With this administration’s strangling load of new regulations and the threat of massive tax increases in the immediate future, these entrepreneurs would be foolish to put their capital at risk.

Second, this administration’s treatment of capitalists like villains isn’t conducive to job, wealth and prosperity creation. Telling businesses to put their money at risk so the government can confiscate it through outrageous tax rates is the best way to guarantee miniscule job growth, which is what we have.

But let’s look at Berg’s “bonus” questions…..

Why is Paul Krugman’s wet-dream state California floating toward the surface, its belly slowly rotating toward the sky, with a private sector that is leaving the state as fast as moving trucks can be secured?

California was the victim of the Republican “wet dream”, Proposition 13….which has shackled California legislation for decades. And the idea that super majorities are required to pass tax legislation (another GOP “wet dream”.) Now that California has formed Democratic super majorities, we shall see how the state can work.

This fight’s outcome has been determined. California will be a mess for the forseeable future. Prop 13 wasn’t the problem. After Prop 13 passed, economic growth in California continued.

What’s crippling California is their pension system and their cultish adherance to insane environmental policies. Environmental policies have crippled the agriculture economof California’s Central Valley. A different part of California’s environmental policies are preventing the state from tapping into vast energy resources lying just beneath the surface.

Rather than investing in job-creating fossil fuel project that would create wealth and prosperity, California took the opposite approach. They’re investing heavily in failed green energy economies. The only jobs the green industry has created are being filled with bankruptcy lawyers.

No amount of tax increases will fix California’s economy if they continue to ‘invest in’ failing green energy projects while not tapping into fossil fuel reserves. No amount of Mindeman’s arguments will put that in better context.

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