Jobs Act: Small Is Big
March 4, 2012
Richard Nixon went to China. Ronald Reagan and Mikhail Gorbachev forged a friendship. On Tuesday, Barack Obama and Eric Cantor said nice things about each other.
They traded compliments regarding the promotion of small business. While introducing legislation to help small businesses create jobs, Cantor explained that some of the package's components came from the administration's jobs council. The White House similarly praised the essentials in the House majority leader's plans.
The Republican primaries have generated considerable debate regarding bailouts. During the Michigan campaign Mitt Romney and Rick Santorum reminded voters that they opposed the bailout of Detroit. Santorum also criticized Romney for supporting the Wall Street bailout. We will not revisit the issues here except to note that the much-derided financial bailout may have prevented more serious economic damage. The original bailouts occurred during the Bush administration. And, although the Detroit bailout may have reflected errant principles, the revival of the auto industry probably guarantees an Obama electoral victory in Michigan.
Cantor's jobs initiative does not propose to bail out small businesses. Rather, it stresses tax cuts. A 20 percent reduction would keep capital in the hands of business owners, thereby allowing them to increase their investments and expand their hiring.
Legislators from both parties have expressed their enthusiasm. Indeed, Democrats beard Republicans for swiping some of their ideas and attaching a GOP name to them. The bipartisan support the approach seems destined to receive will include more than enough credit to flatter every partisan.
As the title suggests, the majority leader leads his team. In this instance, Cantor is serving Congress as a whole. And Obama is doing his part.