Demand without supply is not inflationary in a recession with high unemployment and not when over-stocking is already an issue. There is currently an excess of supply and little demand. That's why we have unemployment. If there is more demand, people will go back to work to re-stock the inventory.
The US public sector has been shedding jobs since Obama's election which is why the unemployment rate continues to be so high. There are 700,000 fewer government workers (at all levels of government) since Obama took office. Virtually all of the jobs created under President Obama are private sector jobs.
Federal government spending DECLINED in 2010. I went back to 1977 and couldn't find any other year in which federal spending was less than the year before. So your mini-rant about then private/public sector jobs is pointless.
As for your solutions:
Definitely a good idea and a great long-term goal, but will do nothing for unemployment in the short term or the long term. Any changes made to the tax code would have to be "revenue neutral" or increase government revenues so that doesn't do anything for the economy, one way or the other, other than to put a lot of accountants and tax lawyers out of work. The more complicated the system, the more we need tax lawyers and accountants.
I'm not opposed to putting tax lawyers and accountants out of work because I work in the areas of corporate/commercial transactions and real estate and a bit of estates work, but you have to expect howls of outrage from this group when revisions to the tax code are proposed.
The Obama administration started this work in his first term.
White House to Scale Back Regulations on Businesses - WSJ.com
They have a group of public employees going through the thousands of regulations and requirements in an effort to reduce red tape. Really, this should be an ongoing project for EVERY administration. But again, it does little if anything, for unemployment and the economy. Unless you're working with hazzardous chemicals, or exporting/importing restricted items, government regulation doesn't impose THAT much additional paperwork or expense.
What do you define as "essential services"? Your definition and mine might not be the same. I consider health care an essential service. I consider education an essential service. I consider regulation of banks and financial institutions an essential service and one that needs to be improved.
Defense and the military - a necessary evil and the biggest drain on the economy. I'd cut the budget in half because US defence spending is more than the next 10 biggest spenders combined, but then all those defence contract workers would be thrown out of work so that's not going to help the economy either. That's why no drastic cuts THIS YEAR.
First off, your premise is false. Small business creates half of all private sector jobs. From the Small Business Administration website. I've bolded the response on employment that relates to percentage of jobs:
Frequently Asked Questions
Yes, demand will help these people. They are the companies whose workers and customers (for the most part), are all located within the US. When people start buying again, these are the companies (other than retail), who will benefit the most. Once their products and/or services are in demand again, they will be in a position to hire.
Small business is the "monkey in the middle" of the US economy. They pay the highest rates of corporate tax and these are the folks who have been hurt the worst by the recession. They don't have the resources or the loopholes that the largest corporations have to reduce their tax rates so they pay 35% federal taxes. The average corporate tax rate in the US is much lower than 35%. For example, Monsanto paid no corporate federal taxes, nor did some of the big oil companies.
The Corporate Tax Rate Is Lowest in Decades; Is Business Paying Its Fair Share? | TIME.com
There is a long list of mega-corporations who pay no taxes. Just as the wealthiest 1% will be asked to pay their fair share of taxes, so should America's largest corporations. The list of corporate "takers" is shameful:
America’s corporate tax obscenity - Salon.com
Tax breaks should be given to small businesses who really are paying their fair share, not mega-corporations. Subsidies to large businesses needs to end and yes, that includes those tax breaks for corporations to locate in your community. Studies have shown that those sweetheart deals negotiated with local governments are not profitable for local governments. Big business needs to pay its fair share too.
