We are not going to have job nor economic growth until we deal with this problem.
Posted on 09/12/2011 5:26:35 PM PDT by Kaslin
We need a refresher course in Job Creation 101 to judge how much, if at all, President Obama's proposed $447 billion program of spending increases and tax cuts might revive America's sputtering job machine.
Recall that the private sector is the main employment engine. Businesses create jobs when two conditions are met. First, extra demand for their products justifies more workers. Second, the extra demand can be satisfied profitably. There are qualifications to these generalizations (startups, for instance), but these are the basics.
As for government, it's less a job creator than a job changer. It supports jobs (soldiers, teachers, scientists) by taxing, borrowing and regulating. If government taxed, borrowed or regulated less, that money would stay with households and businesses, which would spend it on something else and, thereby, create other jobs. Politics determines how much private income we devote to public services.
There's one glaring exception to this. In a slump, government can create jobs by borrowing when the private economy isn't spending. But the effect's temporary and isn't automatic.
Obama's controversial $825 billion "stimulus" program in 2009 conformed to this logic. He claims it created or saved jobs. I think he's right. At the time, consumers and companies — terrified by the financial crisis — had gone into lockdown. Government programs induced spending that otherwise wouldn't have occurred.
How many jobs were saved or generated is harder to say. The Congressional Budget Office estimates somewhere between 1.4 million and 3.6 million.
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No it doesn't.
Obama has to learn how jobs are created.
This factor - stability - is the key factor that every proposal made by BOTH Clinton and Obama has lacked. Every “job” created by Clinton was temporarily backed by government \rants. Once those grants ran out, after two years in most cases, the local communities were expected to pick up the bills forever. Well, that didn't happen with “100,000 new police officers.
Obama’s job creation concept has included temporary incentives, normally in the form of tax credits, that run out after six months. Even his support of “Green Jobs” had an expiration date on it. Look what the results of that “thousands of new jobs” really are.
To generate new jobs the government must guarantee a stable environment with few new regulations and even fewer short term efforts to influence businesses. Once the stable environment is established business leaders can make reasonably accurate projections about the future costs of doing business and then proceed accordingly.
As long as the government's efforts come with short duration incentives and massive infusion of new restrictions and requirements small businessmen, those unable to hire a Congressman or Senator to write exemptions for them will sit on the sidelines. it is as simple as that!
Our political elites need to learn this, not the American people.
Americans know how jobs are created. The Child In Chief does not.
...and the ObamaBot LibTurds.
Obama and his Democrat suckbutts.
Obama hasn’t got a clue, and the Democrats are following him like he was the Pied Piper.Instead of a flute he plays a violin while we burn.
You got that right. Most people I meet now believe that jobs come from Government spending only.
Carter convinced America it needed to re-learn how jobs are created, and Reagan came along and taught the lesson. America has since forgotten... again. zer0 has convinced America it needs to again re-learn how jobs are created. Somehow America will re-learn that lesson starting in 2013.
Rule No. 1 Supply the demamd
Rule No.l 1/2 As far away from the Fed. as possible!
For the past several decades, the so-called "progressive" politicians in America have claimed to be "studying poverty," and they have spent billions and billions of the dollars of coercively-taken tax dollars from hardworking citizens on "solving the problem of poverty." The problem persists.
They would have been better off to dust off the cover of Adam Smith's work, re-read their nation's Declaration of Independence from the taxing and regulation of King George in 1776, and figured out that the greatest burst of freedom, innovation, productivity, wealth creation, and plenty resulted from the principles of liberty understood by Smith in Europe and the Framers of America's Constitution than ever had happened in the history of civilization.
Of course, we know that their interest never has been solving poverty: their interest has been in accumulating and centralizing power in a political elite in Washington, D. C. They simply use handouts and freebies as political currency for the purpose of buying votes.
Somebody needs to call it what it is: it is not "progressive." It is "regressive" and destroys freedom, opportunity, productivity, and wealth. It produces tyranny and want.
The question is the same one asked by Smith: how do nations create wealth? It is not how do they "redistribute" what their citizens have created?
If we want healthy capitalism, Americans have to have capitalist leadership.
Otherwise, we become Cuba or North Korea which is where we are now headed.
We are not going to have job nor economic growth until we deal with this problem.
With Obama and his cronies in the driver's seat, there are a huge number of variables.
New hires who aren't absolutely needed to conduct business aren't going to be hired in that environment. Period.
Of course, Government doesn't understand this, because they just pass the cost on to us--they don't have to show a profit to feed the kids.
The environment for business has become hostile. So, the solution for me has been simple. I engage the services of subcontractors, I do not hire employees. My little company cuts their little company a check when the job is done. I don't mind if they are a one horse show, as long as they can get the job done and done to spec.
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