Charles Schwab, founder of the investment company that bears his name, took to the pages of The Wall Street Journal Wednesday to denounce stimulus spending and raising taxes on the rich, writing, “We must knock down all hurdles that create disincentives for investment in business.”
“We cannot spend our way out of this,” Schwab (left) writes. “We cannot tax our way out of this. We cannot artificially stimulate our way out of this. We cannot regulate our way out of this. Shaming the successful or redistributing income won't get us out of this. We cannot fund our government coffers by following the "Buffett Rule," i.e., raising taxes on Americans earning more than $1 million a year.”
He notes he founded Charles Schwab in 1974, when America was confronting a crisis of confidence similar to what the country is experiencing today.
“We had rapidly rising inflation and unemployment, economic growth grinding into negative territory, and paralyzed markets. The future looked pretty bleak.
“Sound familiar?” he rhetorically asks.
Advocating for the entrepreneurial spirit that he says is critical to American business, and using his own experience as an example, Schwab calls for Congress to review “every piece of existing legislation and regulation with a clear eye to what impact it will have on business and growth.”
“If something is a job killer, put a moratorium on it. Stop adding to the litany of new laws and regulations until we've had time to digest those in place and regain some certainty about the future. Proposed laws and regulations should be put to a simple test: What will this do to encourage businesses and entrepreneurs to invest? What will it do for jobs?” he says.
Schwab concludes: “As we did after 1974 [when the firm was founded], our country can and will thrive again. But the leaders of both parties, Republicans and Democrats alike, must lend their voices to encourage and support private enterprise, both for what it can do to turn our economy around and for the spirit of opportunity it represents.”