How Can We Help to Fix the American Economy? Answer #1

By now, most people probably think the American Economy has some very serious problems.   Certainly, when we hear that the official unemployment rate is 9.8% (September 2009), it is understandable why people are very concerned.

Another measure of labor underutilization, U-6, is 17.0% (September 2009).  The U-6 measure includes discouraged workers who are not currently looking for work as well as other categories of workers.

How can we help Americans get back to work?  How can we help to fix the American Economy?  Well, consider Ireland.  Ireland went from about 18% unemployment to 5% unemployment over a period of years by (among other things) cutting the corporate tax rate.  Lowering the corporate tax rate lured hundreds of companies to set up operations in Ireland.  (Incidentally, doing the opposite, that is, raising corporate tax rates in a given country encourages companies to outsource jobs to other nations.)

America exists in a global economy.  If America is to be competitive, it needs to lower corporate tax rates.  This should help lower the unemployment rate and increase economic growth.

How can we help to fix the American Economy?  Answer #1 – Cut Corporate Tax Rates.