A third key reason for the business-investment decline is over-regulation. Obamacare rules and mandates are job-killers. Dodd-Frank red-tape costs have held back lending to such an extent that business start-ups have practically come to a halt. And community banks have drastically pulled back loans to existing small businesses.
Then we have the Obama Environmental Protection Agency's new rules, which amount to a war on fossil fuel. The president pushes for climate-change regulations instead of a massive build-out of energy infrastructure, including pipelines, liquid-natural-gas terminals, and new refineries.
Want more manufacturing? The energy business, and the potential for North American energy independence, is the key. Hillary Clinton, and her promise to end oil and gas fracking, will pull us further in the wrong direction.
Many people do not to understand that business investment is a critical prosperity-booster, leading to more jobs, higher wages, and stronger family income. Put another way, rising tax and regulatory burdens that penalize investors and businesses also punish middle-income wage earners.
And it's these wage earners who would benefit most from business-tax reforms, such as a 15 percent corporate rate for large C-corps and small S-corps. This should be accompanied by immediate tax-deduction expensing for new investment and a territorial tax regime that would stop double-taxing profits earned abroad.