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  • Where Are the Jobs, Mr. President?

    Rep. Jeb Hensarling (R-TX) is convinced that President Obama has no viable plan to revive the economy and reduce unemployment. Two years after the failed stimulus and a year since the administration’s “summer of recovery,” the unemployment rate now stands at 9.1 percent.

    Without much hope coming from the White House, Hensarling said lawmakers in Congress are forging ahead with an agenda focused on job creation.

    “Issues of spending and jobs are inextricably linked,” said Hensarling, who spoke at this week’s Bloggers Briefing at Heritage. “The greatest impediment to job growth today is not a lack of capital; it’s a lack of confidence. Lack of confidence in all of the president’s policies.”

    Hensarling noted the alarming statistic that the median duration of unemployment is nearly 40 weeks, the longest since the Great Depression. With nothing but grim economic news on the horizon, he pointed to the upcoming debate on the debt limit as a seminal moment.

    The House Republican Plan for America’s Job Creators, released in late May, includes measures that call for spending cuts that exceed the debt limit hike. It simplifies the tax code and increases competitiveness, and it empowers job creators to help Americans get back to work, which is the first step toward recovery.

    More than 150 economists, including a Nobel Prize winner and two former directors of the Congressional Budget Office, have endorsed the plan.

    Meanwhile, Hensarling vowed that conservative House members will continue to vote against the Obama administration’s job-killing regulatory agenda, which he called a hidden tax on entrepreneurs and job creators. Hensarling believes Obama has been more effective in keeping the economy from rebounding than he thought possible.

    There is one area of possible collaboration with the Obama administration, Hensarling noted. Free trade agreements would open up more markets to American products. Increased competitiveness for U.S. manufacturers would create jobs and “speaks to the fundamental economic liberties of the American citizen,” Hensarling said.

    “I’m cautiously optimistic that we may be on the verge of getting these free trade agreements on the floor and passed,” he said. “The president is so desperate he’s actually willing to try something that works.”

    Abigail White is in the Young Leaders Program at The Heritage Foundation. Click here for more information on interning at Heritage.

    Posted in Ongoing Priorities [slideshow_deploy]

    8 Responses to Where Are the Jobs, Mr. President?

    1. George Colgrove, VA says:

      I heard an interesting perspective on WMAL early this morning. They were commenting on how the housing foreclosures were decreasing, yet the backlog of filing were going up in the courts.

      What the talk show host was saying was that the problem is not getting better since the foreclosure numbers went down, because the foreclosure numbers were still bad. What they were saying is that we should look at this as if we are nearly at the bottom of the ocean and we are still heading down. That to get back up to where we were would take an incredible effort over years, even decades of recovery. And that even with that, we will never be where we were considering housing was in a bubble. Moreover, that bubble was boosted and supported by government intervention.

      This may be true with jobs and the economy in general. The economy was in a bubble in the 1990's which crashed in 2001 from the terrorist attacks. The federal government has since been boosting and shoring up the economy by intervention. The federal government in many different mechanism since 9/11 has intervened with the natural flow of the economy – all of which has failed.

      The bad jobs number is actually worse than it looks. Since 9/11, the federal workforce has grown by about 800,000 workers – ALL OF WHICH ARE UNFUNDED (i.e. growing national debt.) Their compensation has artificially grown at alarming rates (over 36%) when compared with the rest of us – whose compensation has gone down by 23%. This is one of those interventions.

      Since 9/11 our interest payments on the national debt have more than doubled. Leaving even less money to pay for programs and personnel. Meaning the total number of unfunded federal workers could top out over a million.

      State and local governments also have alarming aggregate number of unfunded positions.

      This is the ghost unemployed. They still receive paychecks and especially federal workers who are being paid more than twice the private sector, are contributing to the economy – but for how long. If tomorrow we decide not to go deeper into debt, the unemployment rolls will skyrocket. This is as much a tinderbox as the unfunded mandates we learned of these past two weeks.

      The fact is the federal government (Congress, the federal workforce and the White House) has created a disaster – worse than the Great Depression. In the ‘30’s this country was not in a comparable debt that we have right now, and since Social Security was just being created, we did not have the mass of unfunded promises made out to people. The federal government failed in the great depression. Imagine the task ahead now. Do we really believe this group of 2.7 million arrogant, self-serving, greedy congress people and federal workers has what it takes to get us out, when it was their blind ignorance and self interest that got us where we are today? They cannot even do the simple thing, let go of all unfunded positions and programs and balance the budget!

      Jobs are not on their way. Jobs can only be created when there is demand. And there is shrinking demand. Obama wants to force the government model on companies. Obama scolded corporations for making their operations too efficient. Obama feels that companies need to ditch automation in favor of droves of employees. We will end up with lines of hundreds of men digging ditches rather than use a bucket loader. There is no growth in that. Obama in everything he says almost sees America being the most optimal when we are without electricity, working like indentured servants, riding bikes and so on. Welcome to China! Is he preparing America for our new communist leadership in the next few years?

      Increasing the debt limit does only one thing. It keeps the federal government in power as it is now. It will not help the average American. Every federal worker every federal program, agency and department is currently working against this country in a disastrous way. There are no federal workers standing up for us, the people – advocating for us – willing to sacrifice at their end by accepting a lower and fairer wage and by reducing their numbers. It is clear Congress and the White House has been gone for years. The entire federal government is poison, a cancer to the future of this country. Increasing the debt ceiling will only continue the decline of jobs and the economy in general. We will be paying these corrupt feds to continue to pound us with more disastrous regulations as each federal worker strives to find greater self purpose.

      We tried government solutions in the ‘30’s to no success. Today is the results of FDR’s work. MY GOD, WHAT WILL BE THE RESULTS OF BUSH’S AND OBAMA’S WORK?? Every debate we are currently having about raising the debt ceiling we had in February 2010. We were told that raising the ceiling would result in us being able to balance the budget. Where are we? We need to raise it again more than before. This economy IS NOT GOING TO GET BETTER. This ignorant self-serving group of thieves – at all levels – convinced us that the last increase would create jobs and boost the economy. IT DID NOT HAPPEN! Why are we all of a sudden going to see something different this time around when things are far worse? We are digging a hole so big it will be impossible to get out.

      Will laying off a million feds hurt the economy? It might, but think of this, they will go on unemployment for a period of time, which will soften their blow, but for us, the real taxpayers, it will be a massive discount! In real terms, they are unemployed right now; we are just not seeing it because of government intervention. If the feds properly followed a balance sheet, these people would not be employed.

      The disaster has hit over a year ago and we were lied to. The same players are still in town and we are still being lied to. Jobs are falling fast if we get away from the fiction provided by federal workers desperately trying to keep their high paid positions we will begin to see it. Go to any mall outside the beltway and try to tell me jobs are being created. Look at the empty parking lots at most of our former factories. Look on any city street anywhere and you will see empty stores. If the federal government stopped deficit spending and got rid of the unfunded federal workers, stopped stimulus spending, and stopped all unfunded programs and contracts, where would we be then? This is chilling. This economy right now is boosted by debt in the amount of $1.6 trillion this year, $1.4 trillion last year, over a trillion the year prior, and we are planning on a trillion or more in 2012. If it were not for deficit spending, we would not be where we are today. WE HAVE NO ECONOMY!

      We know what the government is doing right now is not working. If we go along with them right now and increase the ceiling and the economy does not improve, what do we do next year?

    2. Robert, North Richla says:

      Hensarling needs to shut his mouth. Hensarling voted for Boehner as Speaker, and the Boehner, Cantor, Hensarling express has done NOTHING to check the Obama administration – nor have they accomplished anything they promised in their November List of Lies. Hey, Jeb: What about ANWR? What about the Keystone pipeline? What about "making government smaller?" What about defunding Obamacare? What about your three, failed spending resolutions that cut a whopping $350 million dollars? Shut your trap, Jeb!

    3. Kevin H, college par says:

      If the Democratic and President's policies did not work, how come we were losing 750,000 jobs a month in January 2009 and so far this year, we're averaging over 200,000 jobs added (with the vast majority in the private sector)?

      How can you reconcile that? It seems people quickly forget how terrible the economic downturn was just 3 years ago. Do you remember where things were in late 2008?

    4. j.c. mac neil says:

      Great job Abigail! Hope we read more of your work. JCM

    5. Redfray, Pea Ridge, says:

      If we had anyone in Washington D.C. smart enough to figure it out, they would know what they did to send jobs to other countries, and then, they would undo what has caused the problem. These so called elitist, are more for themselves than the American citizen, who pay taxes. Money, money, money is in the heart of our highly educated politicians.

    6. Lloyd Scallan - New says:

      Kevin H – It's real simple.to reconcile. The Dems were in control of Congress since Jan. 2007. Second, job loss slowed because most of the good jobs were already lost by today. Now, I want you to reconcile why, if Obama are so great at

      spending trillions of dollars of creating jobs, why do we still face a 9.1 unemployment rate 2 1/2 years into Obama's job creating plans?

    7. Robert, North Richla says:

      If Representative Hensarling cared about reducing spending, he would have insisted on the full $100 billion that he and other republicans promised. If he cared about jobs, he would push to open up ANWR (750,000 real, high-paying jobs); build the Keystone pipeline (300,000 jobs); he would push to repeal (and defund) Obamacare (as they promised); and he would push for new, real infrastructure spending (roads and bridges) where you create 34,000 real, high-paying jobs for every $ 1 billion in new spending. He is NOT a reputable source.

    8. Ginger White, chicag says:

      The administration needs to support small businesses! That's where the job growth would be. However, this socialist President is more focused on growing the government…..How's that HOPE and CHANGE thing working for all of you who supported this out of touch, disastrous President?

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