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  • The Jobs Summit: Jobs Failure 2.0

    The unemployment rate when President Obama took office last January was 7.6 percent and credit markets were in the throes of a global contagion. He immediately tasked Congress with passing a fiscal stimulus bill, and signed a $787 billion whopper in March.

    Politicians rarely admit mistakes, especially big ones. Even so, Obama’s White House jobs summit on Thursday is just such an admission writ large. Stimulus 1.0 failed and now with unemployment having burst through 10 percent and climbing the President and the Congress are scrambling to cobble together Stimulus 2.0. The approach may differ from the previous failure, but if Congress legislates the policies floated so far, America’s unemployed should expect no help from Washington.

    Washington repeatedly fails because it refuses to admit that almost without exception government actions do not increase employment on net. Only the private sector in pursuit of opportunity can create jobs on net. The best we can hope from government is that it keeps to a minimum the jobs it prevents and the income and wealth it destroys.

    The good news is that recoveries happen and they happen because an economy that enjoys flexible markets and flexible prices adjusts. It adjusts in good times and in bad. It adjusts to whatever mistakes led to the recession. It adjusts to whatever damage is done during the recession. To get the unemployment much below 10 percent over the next year will require policies that help the economy to heal itself, to adjust more quickly.

    Government can move the economy toward a strong enough growth rate to bring down unemployment first and foremost by improving the confidence of families and businesses in a prosperous future. In contrast, a review of Obama’s proposals and actions of Congress shows they uniformly sap confidence in the future:

    • Obama proposed higher tax rates on small businesses and capital income.
    • Massive new regulations and higher taxes as part of risky cap and trade scheme.
    • Massive new taxes to pay for a hostile government takeover of our health care system.
    • Massive and ongoing deficit spending, building a bridge of unsustainable near-term deficit spending to our unsustainable long-term entitlements spending.

    In short, government plainly and manifestly just doesn’t get it.

    If you’re a business today, coming out of deep recession, facing excess capacity and layoffs, do you take a big risk? Do you invest for the future or do you hunker down? Facing this government and its policies, is your goal for now to compete and win, or just to survive?

    If the President wants the economy to create more employees today, then he has to stop threatening the employers with taxes, red tape, and a bleak future. Sadly, doing nothing is a powerful policy substitute for doing great harm.

    But government can do more to create a positive atmosphere of confidence in the future, beginning with slashing spending to get the deficit under control. Specifically:

    • Stop increasing discretionary spending by 8% annually;
    • Take back unspent stimulus and TARP money;
    • Enact spending caps, forcing lawmakers to prioritize; and
    • Add the creation of a Bipartisan Entitlement Commission along the lines of the Wolf-Cooper SAFE Act to the upcoming debt limit vote.

    In addition, Obama could embrace free trade as a boon to economic growth as did President Clinton, beginning by demanding the Senate pass the three pending free trade agreements.

    Finally, the President could jettison the hyper-leftist approach embodied in the Senate and House health care deform bills and focus on bi-partisan, effective solutions to rising costs and inadequate access.

    The economy will recover, but it will do so more quickly if Obama calls a time out to his frightening policies and government stops being a hindrance. The key to recovery is confidence. Right now, businesses and families have every reason to doubt. Replace doubt with hope, and the jobs will come.

    Posted in Economics [slideshow_deploy]

    22 Responses to The Jobs Summit: Jobs Failure 2.0

    1. Mike says:

      The job market should have been the focus all along. We've wasted time and money trying to rescue Wall Street fat-cats and Corporate goons. People with JOBS buy houses and cars. People without JOBS lose houses and cars (see: http://www.repofinder.com). At least the Government is finally waking up to this. Romney 2012!

    2. Steve from Ohio says:

      One quick and efficient way to get many more Americans back to work would be to insist that President Obama and DHS Secretary Janet Napolitano actually enforce our immigration laws instead of gutting them as they are doing.

      About 8 million illegal aliens currently have jobs in our country. Imagine how many of these would open up for Americans if our immigration laws were enforced.

      Rep. Lamar Smith of Texas has highlighted this, and I hope other Republicans (and Democrats)follow his lead and common sense suggestions.

    3. Earl, QUEENS, NY says:

      While we know that Jimmy Carter caused the deep recession of the early 1980s, can you imagine the criticism Ronald Reagan and the GOP would’ve gotten from the Democrats and their allies in the lame-stream media if they said something like…..'the unemployment rate will rise and stay high for awhile', and there was nothing they could do about the recession and unemployment, and just blamed all of the problems on Carter? But of course, Reagan DID something about it which the Democrats WILL NOT do – he cut taxes, and we had prosperity and low unemployment for the rest of the 1980s. As for a “fiscal responsibility summit”, what a joke!! BHO whines and complains about Bush’s deficits, but he’s quadrupled them in less than a year!! Well, there is something we can do. Let’s get to the polls on 11/6/2012 and vote for any Republican who runs against BHO. However, to those who still worship BHO, make sure you get to the polls on Wednesday, 11/7/2012.

    4. Joe, PA. says:

      Sadly, I don't see the GOP House leadership stressing how mass mass legal and illegal immigration is impacting American workers during this era when we have a real unemployment rate exceeding 17%.

      We know the Democrats don't care about this, but I had hoped the GOP would (and this is why I do not donate to the GOP anymore).

      In addition to the millions of illegal immigrants working in our country, we are currently admitting about 75,000 to 100,000 foreign workers legally each month — yes, each month.

      The Republicans could differentiate themselves from Nancy Pelosi et al, and bring back Reagan Democrats, by stressing the negative impacts of mass immigration on American workers and families.

      Of course, mass immigration (legal and illegal) is not the only reason why American workers have suffered over the past few decades, but it is a big factor that cannot be ignored anymore.

    5. Freedom of Speech, T says:

      THEY cannot and will not admit they are wrong. This grand experiment in "social justice" (what a term that really is) cannot succeed except by destroying the country's wealth and rebuilding a government socialist/marxist foundation. THEY will never admit their way will not work.

      If the country as we know it gets destroyed in the process, so what? All too many of these people hate or dislike America anyway.

      They WANT a socialist state. But they misjudge the majority of Americans' resolve.

      People will be targeted and destroyed in this process, whether it be financial, reputation, lack of employment.

      So, how's that liberal left party "compassion" working for you, when you don't agree with them, and dare to voice dissent?

    6. Bobbie Jay says:

      Government plays a part in all of this. Obama says "we need to do something to get businesses to start hiring!" No, Mr. President. You've caused enough damage. Any so called "help" from you is just going to damage this country more. What failed government can do to correct their failure, is remove their dictate of regulations and mandates that provoke less business. CUT TAXES! stay out of the freedom of the people!

      Government is highly paid and undisciplined. Government promotes the same to the people government keeps weak.

    7. Spiritof76 says:

      I want my money back. I want everyone that voted for the stimulus and the $3.6T budget resign or fired. I want to bring capital punishment for corruption in Congress and the WH. Isn't this our country? "We the people"?

      Until people rise up and shut down the corrupt Washington DC nothing will change except we will become a banana republic.

    8. Paullette, Asia says:

      Obviously, American citizens are going to have to do what this government is unfit for — use their survival smarts and work! A government that has failed to focus on the jobs issues to this point OBVIOUSLY knows nothing about the subject; this government specialized in redistribution of wealth, debt promotion, and welfare.

      It's a joke that it has a summit instead of a program.

    9. Dave, Laguna Niguel says:

      Exactly at what time in history has ANY communist enacted programs to provide jobs in the PRIVATE sector? Right! NEVER! And it will not change with Obama who had NOONE OF SUBSTANCE at his for-show-only summit. This man is so over his little dictator-wannabe head its just a pathetic scene. Its always about him, who claims to have made progress…exactly WHERE MR PREZ?! In Kobe beef sales maybe with your Wed parties. That would be about it! This man needs to STOP RUNNING HIS MOUTH, REIGN IN EVERY PROPOSAL HE HAS MADE, then just SIT BACK, ENJOY HIS KOBE BEEF, MAKE NO MOVES THEN LEAVE WHEN HIS TIME IS THANKFULLY UP! Be a CLINTON! No moves = NO DAMAGE!

    10. Lloyd Scallan - New says:

      Doesn't the people understand Obama's, and the Democrat's plan to destory America as we know it,

      is working exactly as they intended. They want more and more of us "unemployed". The more unemployment, the more disgruntled the people. The more disgruntled the people become, the faster they will accept any life ring that Obama throws them. That life ring is SOCIALISM. It's all going according to plan.

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    12. Freedom of Speech, T says:

      Dear JOE, PA.

      You are wrong, my friend.

      Members of the GOP do care. Unfortunately, they have let politics scare them for decades.

      The left wingers will use the race card every time you utter illegal immigration. They have sanctury cities in California and other (all democrat cities). They block ways to identify and enforce illegal immigration. They WILL pass amnesty so they can hope to gain more democrat voters. Many groups advocate for OPEN BORDERS for God's sake!

      Many are NOW speaking out because the American people are disgusted with Washington-in-general and finally voicing loud protests.


      If that is too complicated to understand than I am a racist, which is odd since my spouse is a minority.

    13. Al, The Villages, Fl says:

      When the congress stops the spending, kills the healthcare and cap and trade(or whatever name) bills, provides a tax strategy that encourages business and allows for long term planning, drills for oil/gas and develops a sound energy policy etc. then you will know that the government is intent on returning this country to prosperity. This is not what the Obama admin/dem congress have in mind so it will not happen until we vote them out.

    14. Pete Stroempl of For says:

      The Federal government – as defined by our Constitution – is required to provide for our common welfare. That is to provide certain military and criminal law enforcement. The common welfare has nothing to do with: Health care; single moms; or creating jobs.

      I recommend eliminating all departments created since the 1920s that have nothing to do with the Department of Defense; Department of Justice and the Federal Court System; Treasury; Department of Transportation; and the State Department. These are the only services related to the protection of our common welfare – as presented in our Constitution.

      All other agencies must be shut down; and the saved monies used to pay off the debt. All of these services – if they are important – ought to be serviced at the State level.

    15. Perry OK says:

      I would like to expand my business by appx. 27 people. But we shall hold back for now. I can not figure out how much it will cost me to hire them. On top of that add windy care, cap and crap, and who is in charge of the EPA?

      Add in harry ried and his math. It will pay me to hire people that will work for 7.35 hour.it is all a joke but at least I have my job and one day when all the new weares off of the change, common sense will once again rein!

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    17. Susan, Detroit says:

      The Obama group is following the Cloward and Piven Plan. These are two professors from The University Columbia during the 60's. Google Cloward and Piven there is any article there: Barack Obama and the Strategy of Manufactured Crisis_ Cloward Piven Strategy…..Orchestrated Crisis. Their goal is to destroy the private sector. They hate our system. Barack's PR Job Show is just a show. Unemployment is going to get worse. Today news said the Unemployment figures is 10% it went down from 10.2%. Wait after the holidays it will go up again.

    18. Earl, QUEENS, NY says:

      So the unemployment rate fell from 10.2% in October to 10% in November. However, before pulling out the champagne to celebrate the tiny decrease in unemployment, remember that it doesn’t include discouraged workers who gave up searching. Likewise, does 10% take into account temporary jobs? Many retailers hire seasonal workers (often at low wages) for the holidays, and let them go in January. From January to April, there will be many tax-preparation temp positions. And as we enter 2010, there will be many temp jobs for census workers. And 10% is still the highest jobless rate since Jimmy Carter’s recession!! I hate to sound negative, but if John McCain were president now, this is what we’d hear from the Democrats and their allies in the lame-stream media!! Remember the mid 1970s? All the criticism Gerald Ford got from then AFL-CIO president George Meany and many Democrats? Even back then, unemployment never reached 10%!! Again, I believe the jobless rate would be far lower now were it not for the dumb error of some 63 million voters on 11/4/08!!

    19. Bill, Forney, TX says:

      …BOH is clueless, as is his cabinet as to what it takes to run a business, make a profit, expand and hire more people. Only 10% of his cabinet appointees have any experience working in or running a business. The rest of the bunch is like Obama and has been living off the public dole for their entire working careers. They have great theories (in their minds only) and are perplexed when they don't work. Unfortunately, their common basis of economic theory is steeped in socialism and the perceived power of the government. If a little government spending does not fix the problem, they believe its because they did not spend enough, and so the cycle continues.

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    21. John Rosky Andover, says:

      I watched on early morning tv when the congress had DHS Secretary to have the States only arrest Illegals for felonies. The Congressmen was Feingold and that would leave the illegals to do anything like DWI,No Insurance, No legal license on vehicle, people in a vehicle or any other stop that an American Citizen has to face.

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