Dear President Obama,
– There are trillions of dollars available to Americans on the balance sheets of US multi national corporations.
– Our balance sheet will not permit us to authorize another extensive liquidity program like QE2 without massive adverse consequences. And even if we could it too would prove impotent in achieving real growth.
– Out jobless recovery is not sustainable without real employment growth and corporate investment.
– You want to raise taxes on wealthy Americans, both to fulfill your campaign promise and to help accelerate the reduction of our deficit.
– You have largely lost the independent voter and have eroded your core constituency for a variety of reasons. Ultimately you have indirectly given power to the GOP and as a result to the Tea Party.
– Next year is an election year which is notoriously bad for markets, which in the current environment could aggravate the real economy and continue to build friction for your reelection.
– You are no stranger to bold statements and bold actions.
Please consider looking at opportunities to win over big business, level the regulatory framework and reduce corporate taxes. There’s an easy shell game to win whereby you could probably convince Republicans to raise personal income taxes if you lower corporate taxes. Corporations represent the only sustainable path from here for us to rebuild out economy. Growth will create jobs, raise national receipts, spur investment and new technologies and will help you win back the middle. What you lose from your core base you will pick up from the moderate GOP base who have grown to separate themselves from the Tea Party.
A good dent in unemployment will help you too. The drop for 9% to 7% will be a lot more rapid then for 7% onwards. If you become more fiscally conservative you will force more splintering in the GOP likely pushing a Tea Party candidate into the limelight which would in full circle push your original base back into your camp (less of two evils from their perspective).
If corporations can see a clear horizon for doing business over the next five years they will invest. They will not invest just because you ask them to.
If we lower corporate tax rates we will likely attract more direct foreign investment and a fair number of off shored jobs could come back to the US. What we give up in corporate tax receipts we can make up from higher marginal tax rates, additional foreign investment, and possibly VAT taxes.
The only way our country will have a sustainable economy is if our output base is more symmetrical. We need to make more stuff and sell it to the world and we need to buy less stuff which further exacerbates our currency issues as all those dollars flows out of the US into the hands of terrorists, unfriendly sovereigns and into economies with huge surpluses.
I encourage you to be bold again. You ran on a platform of change. Make that platform your justification for your own ability to adapt in the best interest of America.