Wednesday, September 29, 2010

An Open Letter To Californians

This post is specifically for the fine folks in the great state of California, whose unemployment rate is 12.3%.

And it concerns charges by Senator Barbara Boxer against Carly Fiorina in the heated senate race. It is hoped that this post will shed some light on a crucial issue - jobs.

Boxer contends that Fiorina shipped jobs overseas while she was CEO of Hewlitt Packard. But is that the real story? Or the entire story? Not quite.

As CEO of HP, Fiorina had one task - keeping HP profitable. And if that required shipping jobs overseas, then so be it - that was her job, and she did it. But even that is not the story here.

But any THINKING person would then ask, "But WHY does shipping jobs overseas increase a company's profitability?"

The answer is simple - a business has only one objective - maximize profits. That is what it is supposed to do. In America, the corporate tax rate of about 35% is triple what it is in other countries. And in America, powerful unions place huge financial drains on corporate profits, often as much as 30% of profits, while unions overseas either do not exist, or are weak.

In short, jobs go overseas because the unions and high taxes in America drive them overseas.

So then it behooves a thinking person to ask the next qustion, "Who is responsible for this?"

And the record shows very clearly that it is Boxer and her liberal Democrat cronies who keep hiking taxes "on the rich", and that includes corporations. And they want to hike it again. And it is Democrats that empower the unions - they even want to pass "card check" to insure workers do not "opt out" against unions.

So, it is the policies of Democrats like Boxer that force CEO's like Fiorina to move jobs overseas. So the truth of what we have here is a tale of two powerful women - one used her power to force businesses out of America, and the other used her power to do the job she was hired to do - increase profits.

Which one will you send to Washington in November? The one who forces jobs out, or the one who knows how to bring profitability to California?

There's an old, but true saying, "If you do what you always did, you'll get what you always got."

Look at what you "got" with Democrats in control of Sacramento and Washington.

As a side note that further proves the point, the state of New Jersey passed a "millionaire's tax". They said it would add millions to the state treasury. However, the result was the opposite - they LOST money because the millionaires simply moved to Florida, which has no tax. So not only did NJ not get millions, they lost what taxes the millionaires had been paying. They also lost any jobs those millionaires supplied, and they lost all the consumer purchases they made each year, and they lost the sales tax on those lost purchases. By trying to bleed a few million out of the millionaires, they lost tens of millions. More than that - the low or no tax states like Florida GAINED those millionaires, their jobs, their purchasing power.

That is simply how it works. Boxer does not undertand that. Fiornia certainly does.


No comments: