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I did not watch Obama’s jobs speech; I couldn’t.
He really knows how to give a speech and he does sound
convincing but I know better; most of the time his words are just that, words.
I will quickly add that the Republicans do not have any
solid ideas either about job creation, they just oppose everything Obama
suggests and hope the economy stays stalled until election time when people
will be forced to try someone other than Obama, hoping change will somehow
translate into progress…it won’t…the economy will get better naturally with
time.
So is there nothing our government can do to turn the
economy around? Well there is no magic bullet out there but there are many
little things that our government can do to “help” the economy create more
jobs…more on that in a later blog.
Jobs are created when businesses hire people to satisfy an
increase in “consumer demand” for whatever it is that businesses are providing.
Consumer demand is at an all time low because people are scared to spend money
they may need if things get worst.
Obama suggested a deeper cut in employee payroll taxes. This
would put a few more dollars in people’s pay checks. This multiplied by
millions of people would put more dollars into the economy providing people
spend those dollars and not just use them to pay down their credit card debt;
people buy more stuff, businesses make more stuff.
Giving tax breaks to businesses that hire the unemployed is
just plain silly. Businesses will hire people when they need people and not
because of a tax break and they will need more people when the consumer is
buying more of the business’s stuff and not before.
I am conflicted about extending unemployment benefits mainly
because of personal experience. My company offered jobs to a few people that
were unemployed but the offers were rejected as soon as the workers heard that
their jobless benefits were extended so I do believe that extending these
benefits may discourage “some” people from seriously looking for employment.
But as my wife points out, there are more people out there,
eager to work but just unable to find employment and they really do need the
unemployment benefits and the benefits do put more dollars into the economy.
As to fixing our roads, bridges and schools and creating all
those construction jobs…that was suppose to happen with the first stimulus
package and it didn’t…why?
Like I said…nice speech but…
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