A very simple way to create a lot of good-paying US jobs quickly and cheaply is for the US Government to offer very robust incentives for US Big Corps to go through Corporate Spinoffs/Breakups.
When US Big Corps acquire other businesses, what always happens is a loss of many good-paying US jobs. The US Government should be much tougher on allowing these acquisitions, not just because of the resultant lack of competition, but just as importantly, because of the resultant massive job-killing result of acquisitions.
But on the other hand, when a US Big Corp spins off a segment, this always results in just the opposite situation, where many attractive US jobs are created immediately, due to the necessary additional high-quality infrastructure that is needed for the company now separately spun off.
Corporate spinoffs also have the additional advantage of unlocking the hidden value of parts of large corporations.
Further, the separately created company spun off can perform much better as a separate unit. Due to a much more intense, targeted focus on the separate unit, the spun off corp is in a much better position to grow its business and to continually create even more US jobs.
So clearly, since spinoffs of large US Corps are a substantial winner for everyone, the US Government should simply ask US Big Corps what kind of government incentives, to both the US Big Corp doing the spinoff and to the new spinoff company, they would view as very attractive to encourage more spinoffs.
Certainly, wise tax incentives would be desirable. When you think about it, a fair CBO scoring for tax incentives provided by the US Government for spinoffs should substantially more than pay for themselves.
The separate unit spun off will usually generate significantly more earnings as a separate unit, and thus the US Government will receive more US corporate income taxes.
In addition, the US government will receive more individual federal income and payroll tax receipts from the jobs created due to the spinoff.
But probably more effective than tax incentives, there are many other nontax incentives that US Big Corps would like to have in order to induce them to do more spinoffs. All you have to do is simply ask them. And I think that even reduced government regulations should be on the table.
Given the makeup of the US Congress, with so many near-sighted, one issue (debt reduction) members, it is nearly impossible to get the US Congress to pass any job creation legislation right now. Thus, I think that the Obama Administration should take it on their own and do everything in its power to offer very attractive incentives for US Big Corp spinoffs where US Congressional legislation is not needed.
The Obama Administration can't wait for the US Congress, which refuses to act on US job creation. Thus, it should offer incentives for corporate spinoffs that will do just that.
And frankly, there are so many nontax incentives US Big Corps would love to have to entice them to do Corporate Spinoffs. I could easily prepare a very long list of some. I also think if would be wise to ask each of the US Cabinet Secretary Heads, as well as other key US Government Employees, to prepare such a list for further consideration.
And US States should consider offering very attractive tax and nontax incentives to entice US Big Corps to do more spinoffs.
Also, it shouldn't just be the largest US Corps, but Corps of all sizes, that should be given these highly-charged US Government incentives to induce them to do more spinoffs.
Hundreds of new Corporate Spinoffs, creating new companies all over the country, is precisely what the country's dormant economy now needs.
