With Economy Improving, Pro-Business Policy Is the Best Social Policy
Pro-business polices are pro-people policies. When the government fosters a climate that encourages economic freedom and rewards success, then everyday people do better. More often than not, social policies end up hurting both people and businesses. If policymakers want to speed up economic growth and job creation, then they should promote “pro-business” policies that make it easier for people to earn a living.
At first glance, some pro-business policies may seem like they would help businesses only, but the reality is that they benefit people too. Cutting the federal corporate tax rate is a good social policy, because it will lead to job growth. Cutting the federal corporate tax will encourage more business activity from abroad, which will encourage U.S. firms to expand their operations and hire more workers.
Businesses don't pay taxes – people do. When companies get hit with new taxes, quite often they get passed on to consumers, through higher prices or lower quality. Other times, these taxes get passed onto the business owners or shareholders, in the form of a lower return on investment. Sometimes, the tax burden falls on employees, through the form of lower wages and compensation. Whenever policymakers enact anti-business policies, the burden falls on people.
Government welfare programs are prime example of a “pro-people” (social) policy that ends up hurting people more than helping them. Even though welfare programs are enacted with the best intentions of helping the poor, the unfortunate reality is that they do more to hurt them. Instead of helping poor people move up on the economic ladder by opening new opportunities, welfare programs lead recipients to depend on the government for the long term. For example, unemployment insurance discourages job seekers from looking for work and taking jobs. Unfortunately, Medicaid reduces marriage rates among poor people because it awards more benefits to unmarried mothers than married couples.
Policies that support business growth lead to good outcomes for people. However, policies that are “pro-people” get in the way of people and businesses both. Policymakers were should support “pro-business” policies in order to get the country back to work.