As an employer, I have to adjust my payroll to the revenues my business can collect. Raise the costs per employee and fewer jobs get created; reduce them and more jobs get created. It’s the way the real business world works, and it’s the main reason why the House and Senate health care bills are destined to produce more unemployment, not less, no matter how laudable to goal. Likewise, air dropping $250 checks to seniors whose living costs have actually declined this year or adding a negligible tax cut blip to a weekly paycheck make far better politics than job saving stimuli. By contrast, a temporary suspension of the payroll tax would have been a far more direct and effective use of the money, and arguably could have reduced our current unemployment by nearly a payroll dollar for dollar basis.
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