Opinion Front: Let capitalism howl

Following President Barack Obama’s job speech, the stock market saw another tough day of trading. The Dow Jones industrial average plummeted 303 points, or 2.69 percent, indicating that both regular Americans and Wall Street have little faith in the President’s ability to spur economic growth and create jobs.

After almost three years in office and innumerable unsuccessful plans to boost the economy, it is time for new ideas.To facilitate growth and encourage hiring, the President should take the boot off the throat of businesses and allow them wiggle room to grow and prosper.

He can do this by first instituting broad tax reform.

The corporate and income tax rates should be lowered to put more money in the hands of businesses and consumers. Instead of tax and spend, the people should be allowed to keep their money and determine for themselves where it belongs.If a payroll tax cut creates jobs this way, why would this rationale not extend to other taxes?

The second step would be to revisit existing regulations for businesses to determine which ones are absolutely necessary. According to the Small Business Administration, government regulation cost the economy roughly $1.75 trillion in 2008.

The next step would be to end discrimination against unskilled workers.

Eliminating the minimum wage would accomplish this by allowing businesses to hire those workers whose skills are valued beneath the federally mandated minimum wage of $7.25.

Finally, we should open up the United States for drilling. The United States is an energy-rich country, and we should take advantage of its resources.

High gas prices increase the cost of doing business and fleece the pockets of Americans at the pump. When Obama entered office, gas was at $1.79 a gallon. Since then, it has doubled to about $3.60.

These suggestions are not exhaustive. There is much more that can be done to boost the economy. But if we take these ideas seriously, and let capitalism work again, I’m certain we can get America back to work and return to prosperity.

­— nperrino@indiana.edu