Incentives work. You may recall that earlier this year I called for a $10,000 tax rebate for anyone buying a new American car. I appreciated the fact that outlets like CNNfn, major newspapers and the Colorado Automobile Dealers Association liked the idea as well.
Congress didn’t listen but that’s dollars and jobs under the overpass. The Cash for Clunkers Program did get people back into showrooms, although it ended far too quickly. Sales, again, are flat. Showrooms are empty.
To its credit, the government is continuing the $8,000 tax credit for first-time homebuyers. I think they should expand it to include ALL qualified homebuyers. There are people looking to purchase another home, even in this economy, and fixer-uppers for investment and rental properties.
The automobile and housing industries are responsible for more jobs than any other in this country. It’s a huge amount of jobs.
Tax credits will obviously impact the bottom line next April 15, 2010 but in the meantime create jobs, jobs that pay good money, money that is spent in the community that generates other tax revenues which far overshadows any downside to tax credits.
Even the administration admits that double-digit unemployment will be around for a while. This is a jobless recovery. But there are people who are working, looking to buy cars and homes. Let’s give them every incentive to do so.
This isn’t rocket science, just sound and proven economics.
When people buy, jobs are created. It’s as simple as that.
John W. Scherer
John Scherer is CEO & Founder of Video Professor, Inc.You can reach him at firstname.lastname@example.org.