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  • Morning Bell: "The White House Does Not Create Jobs"

    Never were truer words spoken. At yesterday’s press briefing, White House spokesman Jay Carney admitted: “The White House does not create jobs.” As the Examiner’s senior political columnist Timothy P. Carney (no relation) later noted, conservatives should greet this statement as “a true and long-awaited admission of government’s limits.”

    Despite the now-admitted fact that the President does not create jobs, President Obama continues to manipulate the economy from the West Wing, offering “stimulus” here, threatening higher taxes there, and picking and choosing which industry can thrive and which cannot under his watch.

    The government cannot create private-sector jobs, but it can strongly affect the conditions for job-creating economic growth. But instead, the Obama Administration has helped create the conditions to stifle job growth. This morning, the unemployment rate was 9.1 percent. The positive news was that the unemployment rate went down from 9.2%.

    However, Heritage expert James Sherk puts this job growth rate into perspective, noting: “The economy needs to add between 100,000 and 125,000 jobs per month to keep pace with population growth. Unemployment will rise if employers consistently create fewer jobs than this.” Stagnant growth that barely keeps pace with population growth proves once again that Obama policies simply aren’t working. In fact, they’re making the recovery more difficult.

    Nobody trusts that better conditions and certainty will emerge soon, especially not the markets. The Dow Jones Industrial Average plummeted yesterday, closing down 512 points, erasing all gains made to this point in 2011. The NASDAQ and S&P also lost roughly 5 percent on the day. The White House’s reaction to the biggest one-day drop since 2008 was: “Markets go up and down.” Yet, investors are worrying about anemic growth, economic weakness, financial turmoil in Europe and Obama’s economic interference.

    So what are just some of the job-killing conditions that are making the markets and employers nervous?

    Obama’s Energy Policy: More than one-third of the drilling rigs in the Gulf of Mexico in 2009 left after the President’s moratorium. If the White House simply didn’t interfere, additional production from deepwater wells could generate 411,000 more barrels per day—providing jobs and lower gas prices.

    Obama’s EPA Regulations: Heritage Visiting Fellow Andrew Grossman explains that the EPA forces businesses to “waste tens or hundreds of billions of dollars per year on environmental upgrades of dubious value mean[ing] that money isn’t available to invest in business expansions or create jobs. Higher costs also cut down on business investment—a factory that makes economic sense at a cost of $10 million may not when EPA regulations have jacked the cost up to $30 million.” These regulations are costing America millions of jobs.

    Union Interference: At the behest of unions, the National Labor Relations Board (NLRB) is attempting to eliminate thousands of Boeing jobs in South Carolina because it is a right-to-work state. The NLRB is also pushing for “snap elections,” which would prevent workers from hearing counter-offers to unionization efforts. Unions are also aggressively lobbying against free trade agreements that have been languishing in Washington since President Bush left office. These agreements would create hundreds of thousands of jobs.

    Obamacare: Obamacare makes labor costs uncertain. Every day brings more bad news as the details of the legislation emerge. Before Obamacare was enacted, private-sector job creation was averaging 67,600 jobs per month. After the law was signed, this number plummeted to 6,400 jobs per month. It’s no wonder 57 percent of Americans want to see the bill repealed.

    The Threat of Higher Taxes: President Obama spent the past month promising that any debt deal would include tax hikes on job creators. When he failed to get those through Congress, he promised they would be part of the “special committee” recommendations. This is now the fourth major push of the Obama Administration to raise taxes on small business owners and investors. The first three attempts failed in Congress and in the court of public opinion, but this push will include the self-destructive leverage of putting the funding of our nation’s security at risk.

    Runaway Spending: After the debt deal was signed earlier this week, the President’s first order of business was a fundraiser in Chicago. At the $35,000/plate dinner, Obama told guests: “Precisely because we were inheriting so many challenges, that we’re not halfway there yet. When I said ‘change we can believe in’ I didn’t say ‘change we can believe in tomorrow.’”

    One wonders: is “halfway” to where? President Obama inherited a 7.8 percent unemployment rate. Unemployment has now been above 9 percent for all but two of the last 27 months.

    Obama inherited a $10.6 trillion national debt. It is now over $14.5 trillion. President Obama’s 2012 budget proposal would have more than doubled this in less than 10 years. It took President Bush eight years to add less than $5 trillion to the debt. Just this week, a newborn baby’s share of the national debt went from $45,000 to $46,700.

    And just yesterday, with $238 billion in new borrowing just since Tuesday, the total debt of the federal government became equal to the size of our economy (i.e., the debt-to-GDP ratio hit 100 percent). That is, if we wanted to wipe out the public debt, it would take all of the goods and services the country produces in a year to do so.

    So, no, this White House does not create (or save) jobs. But it is also crystal clear looking at Administration policy—coupled with unemployment as well as increased debts and deficits—that it also does not produce the conditions to create jobs.

    President Obama should work with Congress to get Washington spending under control, withdraw the threat of higher taxes, enact real entitlement and tax reform that removes uncertainty from the economy, and heed the lessons of the past.

    It can be done. The Heritage plan for “Saving the American Dream“ proves it. But the President and liberals in Congress instead continue pushing job-killing tax hikes and more federal over-spending and over-borrowing. The only economic numbers these actions will increase are spending, borrowing, taxes, and unemployment.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    46 Responses to Morning Bell: "The White House Does Not Create Jobs"

    1. ThomNJ says:

      Carney should have said, "The White House does not create jobs. We destroy them. Bwah ha ha ha ha".

    2. Mary......WI says:

      The Tea Party movement has prevented Obama from reaching his "halfway mark" of "transforming" this country into a socialized country. I sure hope the GOP nominates the right presidential candidate to beat the most useless president this country has ever see. This country has treated him and his family quite well and in return he dumps on Americans. He's like a mini-George Soros.

      We MUST take back our country in 2012 or live unhappily ever after!

    3. Rich Hanson says:

      It's about time that Obama finally admits that neither he nor the government create jobs! It must have been painful to admit the truth….for once. Now, the next step in recovery is to admit that the problem is his (not Bush).

      • carol,az says:

        No my friend the next step is to get rid of him and his thug appointees that have ruin this country beyond comprehension for USA, history.

    4. Curt Krehbiel says:

      Obama's health care legislation was the camel's head in the tent. It was the giant step towards socialism. His energy policy, EPA regulations, union interference, and threats of higher taxes are aimed at destroying the economy under capitalism so that he can nationalize the major factors of production and employment and achieve his ultimate goal of socialism. All that remains to be done to realize his dream is to get reelected in 2012 with democrat backing in the house and senate. Our future depends on the next election.

    5. Lloyd Scallan says:

      Perhaps many more are starting to realize what so many of us have already known before Obama was elected. Obama was groomed by world power brokers to be exactly where he is and doing exactly what he is doing today. How can anyone with an open mind not see what is Obama? Look at the unanswered blank spaces in Obama's life from his childhood through his days just before he burst on the political seen at the 2004 Dem convention. Is their any honest answer that does not prove Obama is a creation by those that would gain when the U.S. collapses.

    6. Ima Conservative says:

      And why does the population keep growing? Could it be the 1.6 million legal and illegal immigrants we allow to cross our borders each and every year. It makes no sense. Stop all immigration, not just illegal immigration. This administration encourages illegal immigration. It is madness!

    7. Spif says:

      This not entirely true, the President HAS created jobs, within the Government! The more he can hire, the lower the unemployment, the higher the taxes needed to pay for them…It also creates a voting base for him, especially at the much higher then the private market place salaries…He is simply buying a country without any ethics, morality, honor, or honesty! And his party backs him up to the hilt!
      Spiff

    8. Elizabeth Griessel says:

      I have to wonder if the House Republicans aren't progressive with Obama. Why couldn't they just stick to the first bill passed and let the President come up with his plan. why fight against ourselves. Makes me think they really are in bed with them.

      • ThomNJ says:

        I also thought they made sphomoric mistakes and absolutely caved to the democrats. What kind of negotiating is that anyway when one has already offered and passed two plans in the form of two pieces of legislation and then decide to create a new one that the dems can vote on "in good conscience"? The Republicans caved, plain and simple. The dems had to offer nothing other than the statement "your bill is dead in the Senate". They could have hung all of it on the Dems by demanding a vote on Cut Cap and Balance or Ryan's earlier plan. If they voted it down, then pass it in the House again with MORE cuts and send it back – repeatedly if necessary. They had a case where polls indicated 2/3 or better of the country wanted REAL cuts, and then they folded and gave up their good hand. If they are not idiots, they must be progressives in disguise.

      • Frank says:

        The Republicans ARE big government Progressives, similar to (but not identical to) the Democrats. That is why, in the end, voters really don't have much of a choice. It's Progressive Party #1, or Progressive Party #2. Pick one!

    9. Frank says:

      The Heritage Foundation does a pretty good job at listing some of the causes of America's lack of jobs:

      Obama’s EPA Regulations
      Union Interference
      Obamacare
      The Threat of Higher Taxes
      Runaway Spending

      I would boil it down to 3 main problems:

      1. An out-of-control & increasingly Unconstitutional federal government.
      2. A corrupt, secret, private central banking cartel (Federal Reserve) running a worthless, debt based monetary system.
      3. A bad tax system that allows over 50% of the people to get more out of the government than what they put into it.

      We need to:

      1. DRASTICALLY scale back from our big government, welfare/warfare, Unconstitutional federal government (cut AT LEAST $1 out of every $3 now spent by the federal government… we can haggle over what is to be kept & what is to be cut). Start to slowly pay down the debt & no more debt ceiling increases!
      2. Eliminate the Federal Reserve & go back to what the USA was like without a central bank & with a currency based upon something of intrinsic value (gold/silver)
      3. Eliminate the Income Tax & IRS & replace them with a simple Fair Tax or Flat Tax. No loopholes & everyone has to pay into the system. No more "free lunches". Business taxes & capital gain taxes can go to zero (these taxes are just passed on to the end consumer in the form of higher prices that make our goods uncompetitive in the world's marketplace & also discourages investment in new businesses).

      These steps would free up capital to be snatched up by private investors rather than the federal government & result in an economic boom. Forced reduction in the size & scope of the federal government would include much less regulation, lower taxes, an even playing field for businesses (no more loopholes for favored ones), decreasing deficits, much less welfare/warfare & many, many new jobs that would lift everyone's standard of living despite a cut in welfare programs.

      • kaydell bowles says:

        I agree with you and enjoyed reading your comment. Thank you for speaking outl We the people must be united to bring Congress under our control and not corporations, political parties and persons wanting favors.

      • vicki says:

        I feel EXACTLY the way you do-how do we get our elected officials to listen to us??? Any ideas? Three families within our family alone have very little federal w/h and then get back $2,000.00 to $9,000.00 every year? How can they get back more than they paid in ??? I think everyone (you too illegals)should pay 10% across the board, no itemized deductions, no refunds no one owes. Also, I think if welfare is needed, an education program needs to go with it- and put a limit on the time assistance is given. Also, quit sending money to other countries like Pakistan. Only pay principal to the Federal Reserve – then get rid of them. They are corrupt. I think we should all go on strike for the whole month of Sept and not have any taxes w/h from our pay – see how they like not getting their allowance for a month.

        • Frank says:

          How do we get our elected officials to listen to us? By cutting off their source of money with which they "buy" re-elections! That means getting rid of the Federal Reserve (corrupt central bankers of immense wealth that contribute via multiple means to both major parties & who can create money out of thin air which is a hidden form of taxation that causes inflation) & getting rid of our corrupt tax system (full of loopholes & special favors towards big business & big labor that also make big donations to perpetually re-elect the same beholden politicians).

          Unfortunately, that probably won't happen until the USA collapses financially, & then the "rest button" is pushed. Then we can restart & try to go back to what our Founding Fathers first wanted & "fix" all 3 main problems at once.

    10. Larry White says:

      Thanks Rory.
      Once again Heritage posts the facts our Conservative Legislators, staff and us citizens need to fight The Obama Administration's attack on Free Enterprise. Obama and his "Team" know what there are doing to our Country and I believe "we ain't seen noth'n yet". The Bureaucracy gets Bigger and Bolder everyday.
      Dr.Larry Arnn, President, Hillsdale College describes this movement as "…Bureaucratic Despotism."
      There are 15 months till the next election and 2.5 months to the Inauguration of Next President (if the people elect a new POTUS). Think of the damage this administration can do in those 17.5 months. We must have some way to stop it or dramatically slow it down!
      Thanks Heritage; Thanks Dr. Arnn.

    11. Carol says:

      With one big exception Mr. B HO will take credit if the jobless rate continues to drop.

    12. victor barney says:

      Yeah, and one thing else: This white house is out to overthrow our government into Marxism as promised those who voted for him. Just like his father promised and did in Kenya, the only other Republic in the world at the time. And noe it operationally proves that Obama is out to overthrow our Republic just the same way and that always has been the agenda of our CIA that I believe Truman started. Anyway the devil is in the details and "we the people" love it that way! No? Tell me in November 2012! Even Carter couldn't get re-elected with a better job than Obama is doing, at least as far as our Republic goes.

    13. NC Conservative says:

      Obama has no intention of ever creating jobs; things are going exactly like he and George Soros have planned: destruction of the economy and America as we know it. W/the stock market crash, Soros could not be happier; he will suck up every stock bargain he can get his hands on. You can only pretend to be an American for so long; he is running out of time and the true colors are really emerging; ck to see if he has his wedding ring on; during the last Ramadan, it was out for repair LOL. I am more than scared; prayer is not a last resort for me; but, I am sure praying harder. We must keep up the fight.

    14. clarence swinney says:

      tax cuts create jobs
      ask Reagan and Bush
      Reagan big Tax cut and Job creation per month dropped by 24% from Carter recorBush Tax cuts got 31,000 net new jobs per rmonth.—Lowest since Hoover
      Wee bit below Clinton 237,000 from a Tax Increase

      Want growth up those taxes Achmed knows best.
      Achmed madmadmad at Bob creation of Great Depression and Great Recession. Shame Bob
      Achmet spit splat .

    15. Whicket Williams says:

      The plan to create a one world government is right on schedule. Time to stop living in denial and admitt it.

    16. Aqualung says:

      Neither do record corporate profits throughout the worst recession since the depression. The tax cuts are there , the profits are there, ….where are the jobs?…..hint: (North America is only one continent)

    17. kaydell bowles says:

      Should not the Headline read: "Congress Does Not Create Jobs"? We have both parties that are not being open and honest with the people. They told us we need to increase the debt limit so we would not default and prevent a downside to the stock market. Lo we are seeing the stock market tank and the still threats of downgrading. This is because the regulations and spending that has brought the economy to its present state. We the people deserve better and our slogan should be to vote all those out who are not the solution. If they are part of the problem they cannot be the solution! Compromise only got us to this position. We need debt reduction and not a 8% base line increase each year in their spending!

      • hotnike says:

        I believe the problem is Obama's Czars creating all the regulations. Congress has no control over the czars because thay report to Obama only. Is this the beginning of his "dictatorship"??

    18. KC - NM says:

      I has been interesting over the last few weeks to listen to the centralist and Tea Party suggestions on what it will take to generate jobs and then start to grow the economy. It is evident that the current Obama administration and Czars, and Congress do not have a clue about what to do or how to fix this. Growing government is just not working – this has been proven over and over. We need immediate change by the current administration to salvage what we can for now. Then we need a systemic change in leadership in the Whitehouse and Congress in order to get the country back on its feet. Change is a must in 2012 – yes we can and yes we must in 2012!

    19. No they don't, They have so many regulations and they won't hire until Obama Care is gone.. They Can't afford it.

    20. Jim Patterson says:

      What Obama dispenses at his news conferences qualifies as 'shovel ready"!

    21. Jim Patterson says:

      Unfortunately, all politicians are NIMBYs. yes, cut, cut,cut but don't cut MY programs. And the Libs say, yes, yes, yes to windpower, but oops,NIMBY. and of course free health care for everyone and those evil, filthy rich will pay for it all.

    22. toledofan says:

      As long as Obama and the Democrats are in control 'saving the American dream' maybe just a passing thought. It's obvious, from the entiretly of the past almost 3 years, these guys don't have a clue. Some may say it's a plan and these guys are doing exactly what they want to do but I think we give them to much credit; their inexperience opened Pandoras Box and they had no idea things would spiral so far out of control. I mean lets face it, the debit ceiling debacle was a classic example of not only a lack of leadership but of complete and utter inexperience. Now we want to do the same things over again that we know didn't work before. They, Obama and company, still think the written socialist model is the way to go even though all the indicators say differently; Greece, Spain, Italy, etc., are ready to fall to pieces. So, more damage will be incured to the economy, more suffering and loss to already struggling families, and the notion that tomorrow will be better may become a pipe dream. 2012 can't come soon enough for me.

      • Lloyd Scallan says:

        toledofan – You're wrong when you blame this mess on "inexperience". If Obama and the Dems were
        that "inexperienced" do you think they could have shoved what they did down our throats? Like so many others, you had better accept Obama was placed where he is today to do exactly what he is doing.
        Destroying this nation by destorying our economical system so that the people will turn to socialism
        to save them. Obama is no fool. He is deliberate and calculating.

    23. Bobbie says:

      What a waste of tax dollars and unconstitutional words of the president to state "we need to create more jobs" No Mr. President, you need to learn your job and stop over regulating the private sector every time you see a hint of improvement.

      the white house isn't on the same focus. While everyone jumps around trying to recover, the white house goes out of their unconstitutional way to make it more difficult. Adding more burden at the whim of government. Stealing jobs and livelihoods daily.

      When a thief is caught, he's put in jail, when a government gets caught, there better be some corrective reprimand!

      • KC - NM says:

        Interesting thought – aside from being voted out of office or impeached, what are the accountabilities for the White House administrative team , Obama and Congress in general. Afterall, they get life-long 100% retirement and benefits for doing a good or bad job. While the rest of us watch in horror about the economy, stocks, retirement, 401's etc, these folks in Washington could care less. What a sham – change is needed now. Americans need to take back this country!

    24. Georgia says:

      One of your best articles. Can you get a copy over to the White House?

    25. GroverN. says:

      Thank you! As everyone knows, jobs are created when the wealthy, or as I call them, "job creators," pay almost nothing in taxes, and when regulations are at a bare minimum. I think that's pretty obvious, based on the last 10, 20, 30 years.

    26. a.d. monday says:

      obama should get out of town and let his vp take over. fifteen months of comic relief sure beats what we have now.

    27. Leith Wood says:

      Great article! Thanks BO for telling us that your miserable plans for the country would take time.

    28. conservative says:

      I think they just dump unemployed people out of the unemployment funnel to keep the rate artificially at 9%. Like everything with Obama, it is all a sham. True unemployment is probably closer to 20%.

    29. Blair Franconia, NH says:

      Isn't that what Ronald Reagan said thirty years ago?

    30. Kent Miller says:

      The one thing no one in the major media has had the courage to say, including Heritage, that needs to be said, and said, again, over and over is, "Obama's destructive agenda is "DELIBERATE", and the consequences we see are exactly the results he wants. Any real, effective, and lasting opposition to Obama's policies will not occur unless and until that fact is known and understood by a majority of Americans, conservatives included.

    31. Earl. QUEENS, NY says:

      The title here is true. However, we also know that some presidents do a better job in keeping the economy and job market strong, such as Ronald Reagan, and even GW Bush more recently. The Demon-crats don’t want to admit this. They also have criticized the millions of jobs created during the Reagan years by saying they were menial low-level jobs. Even if that were true, at least there were a lot more jobs available for teenagers back then than now. And we saw plenty of “Help Wanted” signs everywhere in the 1980s. Compare that to a recent McDonalds recruiting event we read about, in which job seekers far outnumbered the # of job openings. In the1980s, most employers paid well above minimum wage. But over the past 2 ½ years, we see many jobs paying only minimum wage. Even during the GW Bush tenure of the past decade, jobs were still plentiful. And the only place I remember off hand paying only minimum wage was a supermarket in Connecticut with a collusive sweetheart contract union shop agreement. If the demon-crats care about workers, then why do they side with crooked labor unions??

    32. George Pajunen says:

      Put it simple government of any kind doesn't create any jobs. For every person hired by government taxes has to be paid to pay there wages. Those taxes come from individuals or companies. Company taxes are passed on to consumers as a business cost in higher prices. So the ordinary citizen gets to pay the bill either way. For each person hired by government more money is sucked out of the private sector to pay for them. An consequently less people are hired by private companies. The Obama Administration and a lot in Congress do not get what damage the constant growth of government is costing the American People.

    33. John D says:

      There needs to be a new campaign to change the rhetoric to "ALLOW JOBS". The Govt needs to stand aside and let the big boys take over namely the American people.

    34. JOHN D says:

      New Title for this article: MORNING BELL: THE WHITE HOUSE DOES NOT "ALLOW" JOBS

    35. Denver says:

      I can't believe any intelligent person couldn't conclude that what this admin. has been doing doesn't work and an honest person would be driven to change direction to policies that would work.Therefor I can only conclude that the Admin. is accomplishing their objective…and nothing at all as presented to the people. The only coompliment I can give the Pres is: He is the master of the double entendre.

    36. vegas says:

      lol this website is a complete joke! nice "facts" Heritage….why don't you tell us more about how great supply-side tax cuts work at job creation!

      conservatives shouldn't be allowed to lead, they don't believe in government which is why they fail miserably when attempting to run it.

      how's the low wage neo-liberal economic model working out!

      • Bobbie says:

        private sector jobs create money!!!! government jobs COST MONEY!!!!!!! No American should believe in government interference of people's freedom, WHEREVER THAT FREEDOM TAKES THEM!!…under civil law!! Government doesn't create jobs, GOVERNMENT CREATES COST!!!!!

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