What America Needs Now Is Job Creation
The Obama Administration can talk about saving jobs until they are blue in the face. They can tell us they created a million new jobs – no wait, why not tell us it’s five million, it doesn’t matter what the number is. As someone I admire once said, “Facts are stubborn things,” 10.2% vs. the promised 7.8%. Phony job creation claims do not improve the unemployment numbers. I don’t know about you, but I am nearly depressed every time I see the latest unemployment figures. 10.2% only counts those actively looking for work. The situation is so desperate that many people are simply too depressed and despondent to continue looking. They’re still unemployed but they are no longer counted in the official statistics. Arriving at the true unemployment numbers can be a bit of an art rather than pure science. According to the New York Times, true unemployment now stands at 17.5%, nearly a half percent higher than the previous record set in 1982. And there is no sign the trend has reversed. It will likely climb ever higher.
In the early 1980s the Reagan administration countered the Carter recession by encouraging new business. New businesses hire new employees. The Kauffman Foundation released a study Nov. 5th illustrating this fact. The study shows that since 2007, two-thirds of all new jobs were created by companies less than five years old. Contrary to current Washington thinking, these jobs are not public sector jobs, temporary jobs, or welfare entitlements. Job creation that benefits the nation comes from companies employing people with the express purpose of making money for themselves and their employees. Making money motivates job creation. Imagine that!
A maxim that accurately defines the federal government’s role in managing the economy is, if you want to discourage a behavior tax it, if you want to encourage a behavior offer a tax credit. Instead we have a government that adheres to another maxim, “If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” Or more accurately, nationalize it.
The economy has stopped moving and all we see is from our huge stimulus package are temporary jobs and a continuing rise in unemployment. Big established companies are receiving billions in bailout money and for what? Are they hiring? Are they even maintaining their employees? No they are only continuing to be mismanaged by overpaid and persecuted CEO’s, corrupt boards, and now, meddling Czars. It would have done more good to have evenly divided that money between all the unemployed people and sent out checks. At least some mortgages and car payments would have been paid.
New ventures, small new ventures, are the fuel for the economic engine. Washington, OBAMA, yo, how about encouraging new business? Maybe even a bit of protection against foreign threats, definitely low interest loans to start-ups, decrease business taxes, and enact tax credits for companies hiring new employees. This phoney job creation has to end. If you don’t want to preside over the Second Great Depression, do something constructive, something that grows jobs and rebuilds the economy. Stop pursuing new government bureaucracies that only suck more money out of the economy. Stop seeking more government control that only inhibits the economy. Do not engage in any action that would slow or stop economic productivity. Be a positive factor in the economy by protecting and encouraging growth and new business ventures.
Mr. President, look at your models, then look at the actual economy since you took office. Are your models accurate? Are they within an acceptable margin of error? If the answer is no, then you must reject those models and embrace new ones. Partisan politics are what got us here and you continue to play that game. We, the people, are sick of it. You promised change. We voted for positive change and have only received radical negative change. You seem more concerned about political ideology than actually helping people find employment. Employed people pay taxes, unemployed people consume tax revenues. Want to increase revenues for the government? Encourage new business, encourage real job creation in the private sector.
It is not working and you must change. As for those in Congress, your days are numbered. Change or be changed. Government cannot create jobs, but they can create an environment conducive to job creation.