The jobs are coming, or are they?

[Thats my opinion]

THE JOBS ARE COMING! THE JOBS ARE COMING! OR ARE THEY? (8/24)

Now that things have calmed down a bit, following the futility of the debt-cap fiasco, it is time the political wizards turned to job creation. That, after all, is the blood spurting from America’s economic arteries. The Republican solution has always been, “don’t raise taxes—especially on the already wealthy.” The uncertainty of tax increases, they opine, is the reason why the already affluent have been hesitant to invest in job creating businesses. Well, the threat is suspended for the foreseeable future. Taxes on the wealthy will not be increased soon. Now, if that is the Republican answer to job creation, one wonders where all these new jobs are? After all, the Bush tax cuts have been in effect for almost a decade, and their influence has provided only the loss of jobs. Economists tell us we are now on the brink of a double dip recession. At least we are witnessing a stagnant economic future.

The problem is not the lack of available money in the hands of potential job creators. They have the lion’s share of America’s wealth now. They don’t need more. Their almost three trillions in the bank are going almost exclusively to overseas jobs, the repurchase of their owns stocks, and dividends. America does not have a supply problem. It has a demand problem. The American consumer is where the financial lack lies. If people don’t have money to buy, nobody is going to manufacture things that they cannot sell. The question is, therefore, how do we get purchasing power into the hands of potential consumers?

We have been through this before. After a false start with attempted budget cuts, FDR realized that the nation was being driven back into a continued depression, so he put America to work. When D.D. Eisenhower hit the recession following the war, he devised the Interstate Highway System and gave Americans millions of good paying jobs. LBJ, in addition to jobs in the Great Society, generated a housing boom, realizing that the building, sale and occupation of homes is always necessary to break out of a recession.

Most economists realize that in a financial crisis government may be the only source of new jobs. While dealing with the long-term deficit is important, the immediate problem can only be solved by government intervention. Obama’s modest effort to ignite the economy faltered by being much too little, and was thus branded a failure by his opponents. The needs are there. What if we decided to rebuild America’s rail system, our decaying sewer system, dilapidated bridges, and the rest of the infrastructure? There would be millions of new jobs. And that may be the only responsible answer to deficits.

The short-term solution is to awaken the American people to the pickle we are in by turning around the House while securing a filibuster proof majority in the US Senate. That seems to be the task for the next year and a half. While I share the Democratic party’s left in its disappointment over what Obama hasn’t produced, I lay the blame, not on him, but on they way those who elected him ran for cover and allowed the Tea Party et al to take over the House in 2009, almost without resistance. While very conservative funding sources were putting big bucks into almost every campaign, we sat back and let it happen. And when the conservatives discovered the budget deficit and debt cap issues, which were hardly new, they got hold of a gold plated way to inspire terror in the hearts of the middle-class.

No one should expect the Republicans to come up with a solid job-creating strategy before the next election—even if they might have one. The fixation on cutting the government’s ability to create jobs seems to be currently a winning issue, and I doubt if the three they appoint to the new commission will budge from that preoccupation. So if the problem is economic, perhaps the solution is political.

[daa]

1. Not according to the CBO

"In its semiannual update of budget and economic data, the agency -- which serves as the official scorekeeper for President Obama and Congress -- projects the jobless rate will fall to 8.9% by the end of this year but remain above 8% until 2014."

http://content.usatoday.com/communities/theoval/post/2011/08/budget-agency-jobless-rate-above-8-for-years/1

[OHdem10]

2. When Businesses are paralyzed in place and for whatever reason

are not prepared to hire new people, and there is wholesale
unemployment, there are principles that guide. Government
must become the employer of last resort. This is choice
continue on year after year with high unemployment and
NO GROWTH or have the Government set up plans for repairing
and rebuilding infrastructure. Build new transportation
venues, repair and rebuild schools. The list goes on.
This prepares the country to be most efficient when the
Business come out of paralysis. The theory here is
that by the Goverment providing jobs and keeping people
working money circulates through the entire economy and
the businesses begin to get business from the government
workers and soon the Businesses are ready to rehire and hire.
As Business grows, the government pulls back and begins
to cut back on their workers . Finally Business is providing
all the jobs.

It is extremely important that we take steps like this because
this is no ordinary recession. Much of the job loss is due
to poorly managed Trade Policy and outsourcing. It is going
to take many years for us to return to near normal.
The Government should be encouraged to get going on such
plans. The longer we wait the worse the conditions will get.

[Demeter]

3. No Consumers, No Jobs No Money No Recovery

In other words, don't hold your breath, unless you are under water.