For weeks before President Obamas Jobs Speech the Republicans said that it will be a waste of time, because it will be the same old stuff. I thought they were not being fair to the President; it would have only been the right and respectful thing to do, to listen to what he had to say. But it really turned out to be annoying when the Republicans were right.
As far as the media goes, the reactions were predictable. MSNBC said it was great, Fox News said it was the same old stuff that has already proven that it does not work. Maybe Fox News said this because Obama said, “Pass This Bill Now” and he said this several times. He also said “everything in this bill will be paid for”. This sounds too much like the talk he used when promoting the Health Care bill last year. Can’t he think of any new way of promoting bills.
In looking at the Presidents Jobs program, I also think it’s the same old proven failure of an idea to take money out of the economy or borrow it, to try to stimulate it. The President said that the needed $447 billion dollars to finance the Jobs Act will come out of savings generated by other spending cuts in other areas. But this completely ignores the fact that Congress spent the whole summer arguing about spending cuts so that the debt ceiling can be raised; not a dime has been found yet that can be cut because all the entitlement programs are needed so that Congressmen can keep “Their Jobs” in Congress. If they make their base supporters unhappy by not financing the programs they want, they will be out of a job. But to be honest about this, I don’t see anything wrong with sending them onto other employment or unemployment checks.
So, where can the $447 billion dollars come from to finance the Jobs Act. Nowhere; there is no money to be spent on this program. America is $14 trillion in debt, Americans are tired of this high debt to foreign countries to fund our day to day operations, the whole mess is not sustainable. If taxes are raised, this will only do more damage to the economy than any stimulus can heal.
One idea the President had was to renovate 35,000 schools. Well, giving kids a better education is certainly a good idea; this will make for better citizens in the future, but not now, Americans need jobs now! School renovation will provide jobs for about a year, after that its back to the unemployment line. Permanent jobs, like factory jobs where a person can build a career for a life time are what is needed.
Another idea the President mentioned was to, “close loop holes”, but this only increases the cost of doing business in America and so will make America more expensive to do business in, and so cause more jobs to go to foreign countries. Some of these loop holes give business a tax write off if they donate to a charity and this is a good thing, some of these loop holes give business a tax write off if they have extraordinary expenses one year and so helps them survive hard times and stay in business and provide jobs. Sure, closing loop holes sounds good from a “Social Justice” point of view, but it will not generate any new jobs.
The only loop hole that should be closed is the one that allows a tax write off for reducing the cost of moving a business to another country, but this was not mentioned in the Presidents speech. It should be noted that General Electric (a main supporter of President Obama) used this tax write off when it sent some of its factories to China and so loosing jobs here in America.
Also not mentioned in the President’s speech was a fact that I have been writing about for a long time. That is the fact that the main impediment to job creation in America is the fact that people in China make about $2 dollars an hour, while Americans need at least $15 per hour if they are going to live any kind of decent life here in America. That is if they want a house, a car and the ability to send their kids to a decent college. With this wage difference, any job in America that isn’t securely nailed down is going to move to China. But Congress and the President refuse to talk about this, I doubt if they even realize this.
So, what is going on here is the government continuing to use a policy of “Open Trade”, despite its obvious failure, and is now using a policy of “Damage Control” to cover-up the damage of lost jobs here in America. The stimulus package that cost us $878 billion and the now proposed American Jobs Act is just more damage control to maintain the “Open Trade” failure.
Congress is acting like an anarchist who sets fire to a house, then calls the fire department and just before they arrive he shuts off the fire hydrant in front of the house. Then he calls the firemen on the phone, telling them that he can help while getting his book of matches ready.
What America needs is fair trade, not the open trade we now have. This situation where low wage countries can freely sell their goods here in America is destroying America. Tariffs are needed now so that Americans can compete on a level field, only then will there be jobs in America again because Americans can compete with any nation if fair rules are used in international trade.
Other than that, the only other possibility of Americans having any kind of job is the elections in November in 2012, if we can last that long.