The Budget, then Jobs

Several days ago, Cory, over at the Madville times posted an excerpt from Robert Reich’s column I disagree with Cory, more often then I agree with him.  On this issue I agree, America needs to get back to work.  We need jobs, all kinds of jobs, at all levels. Not non-producing government type jobs.  We need jobs were we make stuff or provide some kind service.

  • ditch digging jobs
  • factory production jobs
  • call center jobs
  • management jobs

How do we get these jobs?

Does the Messiah (President Obama)  wave  his mighty staff?  ;Viola! Jobs appear.

Do jobs grow on trees?  A giant job picker machine goes along and shakes the trees until they fall?

Does the government pass a law stating X number of jobs are created?

Jobs are created when someone recognizes a want or a need within a community, then formulates plan and delivers that product or service in exchange for something of value.  No huge secret here, just business 101.

Let’s take the Midway Girls Lemonade stand, they seen a need; it is hot and humid and people would like something cool to drink.  They meet this need by providing ice cold water, then added value by adding some lemon juice and sugar in exchange for money.  They seen a need, came up with a plan and delivered the product to meet that demand, thus jobs were created, not just for themselves,also for the entire supply chain that provided them with the materials to make and deliver  their product.

The government, by its very nature, can not create jobs, because it can not create wealth.  Government can come up with a plan to make and sell the lemonade, however, there is no means to acquire the materials, or provide the labor, without taxing the very people they are trying to serve. Talk about a double whammy, taxed to make the lemonade, then to have to pay for too.  What government can do is create an environment that is favorable to conducting business.  Streamline the permit, inspection process, to make it easier to get approval.

In Cory’s post, Mr. Reich claims the debt crisis is bogeyman and was manufactured to throw our attention away from jobs issue.  The crisis, manufactured or not, is very real.  The lack of wealth producing jobs is why we are here.  What is going on in Washington D. C. right now Is a band aid. No more, no less.  We still need to address the root of the problem.

Congress needs to step up and fix the short term problem. Raise the debt ceiling, and cut spending.

Once this crisis has been addressed, then we need to deal with getting the economy back on track, largely by getting government out of the way.

Some of Mr. Reich’s ideas are:

  • Make the first $20,000.00 income tax free
  • Bring back the WPA, and create a conservation corps,
  • Create some kind of infrastructure bank
  • Create incentives for small businesses to hire.

I am going to add to that list

  • Repeal Obamacare
  • Open overseas markets.
  • Create more small business incubators.
  • Reform entitlement programs
    • Social Security and Medicare
    • Subsidies (farm, ethanol, transportation, etc.)
  • Unemployment
  • Welfare
  • Review oil/mineral leases.  If a company hold a lease to drill and they don’t,  Give the lease to someone that will (drilling = Jobs)
  • Honor  current commitments and don’t start new ones, unless we have the cash on hand to fulfill the commit in full.
    • We promised Haiti plenty of $$$ that we don’t have.
    • Lewis and Clark water project
    • Other public works projects.
  • Cut or reform programs and departments that don’t work
    • Department of education, best handled at the state level
    • FEMA, which has lost it initial focus.
  • Take a serious look at the Fair Tax

I know this will upset the status quo.  I know people will be howling that we don’t care about children or the elderly.  I can hear the complaints that big business will take over.  The children and elderly are best helped at the local levels, and business will come and go.  There was a time that Sears and Montgomery Wards were the largest retailers, and were are they now?

The status quo isn’t working. Let’s find something that does.


49 Replies to “The Budget, then Jobs”

    1. MC Post author

      Where does the money come from to pay the wages for goverment created jobs?


      Where does the money come from to pay taxes?

      1. Anonymous

        Public works are paid for by tax dollars!! Your argument is so logically inconsistent as to appear simply farcical!

        1. parttimeaz

          98% of tax $$$ come from middle class america as over paid people have so many ways to avoid paying taxes. Middle class has very few!!!

    2. parttimeaz

      the airbase could go because it takes hrs to get to the tbl. They could save 75% of fuel to run those big things. Save our fuel, save, save……….. Maybe it is CUT, CUT, CUT we should think about.

  1. Troy Jones

    You forgot “Repeal Dodd-Frank” which I like to call “Protect bad bankers from competition, deprive poor people from capital, and fleece consumers Act.”

        1. parttimeaz

          If a health care operation (non_profit) can spend millions on advertising one of two things are wrong. Not worth a darn or to much $$$$$$$$ from hi rates………….

  2. Spencer

    It is true that the government can and does create jobs, but it does so at a terribly inefficient rate. The federal government needs to borrow massive amounts of money in order to produce a net positive job growth curve; otherwise, the federal government is like the cannibal that claims that there are more people in existence after every meal. The government feeds on existing wealth and can only create the illusion of job creation through the accumulation of debt by robbing the future of its prosperity.

    Whether you use Obama’s phony numbers or data from various right-of-center organizations, the stimulus ended up costing roughly $278,000 to $646,000 per job. The government would have been better off it had just handed out extra large welfare checks at that rate. The average private sector salary in the United States comes out to $53,000 at present. With taxes and benefits, the average cost per private sector job in this country is around $75,000. Clearly, the federal government needs to avoid “creating or saving” jobs like the plague.

    1. Job Creator

      Is there any consideration that the entire economy was in free fall? You know how hard it is to roll a rock up a hill. It’s a lot harder to stop a rock from plummeting down a hill and get it going back the other direction again. Nobody knows what would have happened if the government had done nothing, but I shudder to think of the consequences.

      Granted, this administration is no friend to business – we haven’t had that sort of friend for many years. In the last ten years we have lost 50,000 manufacturing facilities, so the loss of so many jobs is not all on Obama’s back. About 40,000 of those facilities were lost during a period where Washington was completely controlled by Republicans.

  3. DVR

    One point of clarification – you mention “Welfare” in your list of additions to Reich’s list. There is no federal welfare program anymore. Clinton and the House Republicans ended the program in 1986. If you mean something else by “welfare”, please elaborate.

    1. duggersd

      Is Aid to Dependent Children welfare? If so, there is indeed welfare. I bet there are a lot of other programs we would call welfare. Also, as I recall, “welfare” as we know it was supposed to change to two year program if I recall correctly.

  4. springer

    There might not be “welfare,” but there is Medicaid, TANF, earned income tax credit, sales tax rebates, housing assistance, heating assistance, free daycare, food stamps, and many more that I can’t think of right now. Welfare is alive and well.

  5. FMJ

    The problem with creating jobs in the government sector is that most of these jobs do not create any value in the economy. They are just another wealth distribution scheme. Taking away from the productive and giving to the unproductive.
    I have an issue with the idea that goverment can create wealth-producting jobs. Only the private sector can do that. Government can contribute to job creation by eliminating unnecessary laws and regulations the inhibit business creation and growth. Government can do very little to improve the economy but it has great power to weaken economic growth.

  6. Job Creator

    I agree that government needs to keep out of the business of unnecessary laws and regs. Who couldn’t agree with that?

    On the other hand, are you saying that our spending on defense has taken away from the productive and given it to the unproductive? Boeing? Rockwell? Halliburton? GM?

    When the government builds roads and other big infrastructure projects that are needed, are those jobs worthless, too?

    Or are you just talking about the office building after office building of federal employees hired under Affirmative Action who do nothing but twiddle their fingers all day?

    1. FMJ

      Defense spending is a obvious “must do” function of government. Infrastructure, I have mixed feelings, I think there is some good, but there is also a lot of waste through pork barrel projects.
      Mostly, I get upset over huge buildings full of people who just shuffle paper in response to some useless or outdated regulation. No value is created there. Lets look at a specific example.
      Recently I attended a seminar on the new IRS reporting requirements for non-profit hospitals. Doing some quick math, I estimate that the cost will be somewhere between fifteen and twenty-five thousand dollars for each organization that is required to complete the new reporting requirements. This will increase the cost of healthcare by whatever the hospital has to spend to comply but will add absolutely no value to the patient. So, on one hand we have congress whining about the cost of healthcare while the IRS enacts regulations that increase the cost. Frustrating.

      1. Job Creator

        The bureaucracy is a huge – mostly negative issue. Many of those people working in those buildings have not a clue what the working world is like outside of their 40-hour-per-week life and probably could not survive a “real” job.

        Politicians and constituents come and go. Lobbyists and bureaucrats are forever…

  7. feasant

    If the Government would get out of the way, people would hire and the economy would grow. But we have so many government entities that are job killing, EPA, OSHA, and numerous taxes and fees that a lot of people just say, enough is enough.

    The Govenment does not create jobs, people do.

    1. SDMike

      I agree with feasent on this – I sit here in my office wondering why I should hire several more people, since our business is booming right now, but with the on coming of obamacare and the ever expanding government regulations (what the EPA and other govenment organizations continue to do is expand and grow more regulations – they are NOT staying the same – its a justification for their jobs and MORE money). Additonally I have to invest more money in my inventory because my vendors have moved their plants to Mexico (John Deere and Marathon Electric because of unions and govenment regulations) thus now my lead time has become stretched out – which takes money out my operation which could be reinvested in personnel and equipment in the plant to expand the plant and increase output. Right now I’m thinking of taking up spanish and moving south, at least there is no snow there either. Anyone that thinks big government is good for the economy has nevered invested any of their own money to make a dollar. Some of you people are just a bunch of limb -*****.


      1. yoyoyoyoyo

        unions and government regulation send jobs overseas. Dont forget the minimum wage too. Simple economics really, i can pay somoene a few bucks a day or a few bucks an hour. What’s even easier and cheaper though is simply having china manufacture the products for you. I’ d guesstimate a majority of american product companies simply stamp their logo on a foreign made product.

  8. Tim Higgins

    It drives me crazy to hear people speak of SS and Medicare as entitelments, they are not! You do not have a choice as to whether or not to fund these programs, this money is confiscated from not only you but your employer. If you fund it, it is not an entitelment. Period.

    1. feasant

      The reason that SS needs fixing is: a bunch of politicians took the money out of the fund and let illegals take money out of the fund, so they could buy votes. Unless you want it to go broke in 2047 (according to their figures) the SS program needs to be fixed.

      Now I can blame Democrats, because they are the ones who stole the funds at the start. And they voted to let illegals take money out of our funds. But there has been chances to fix this train before it runs off the track from both parties and it is still going to fall off the cliff. But we can sit here and cry rivers of tears and pretend there is not a problem or we can force the clowns in DC to fix it.

      1. Spencer

        Hey, at least April 19, 2047, isn’t your normal retirement date. I plan on dying at my desk in my job at the age of 85. Frankly, I wish the federal government would stop sending me their “calculations of benefits.” I’m not interested in their fairy tales, anyways.

  9. parttimeaz

    government is a organization run by elected officials. it is called house of rep, senate and president. They are the problem not the thing we call government. having worked for one of those 3 letter things it was very easy to see the political appointments are the problem. political people who have no idea of what is needed to run a cost effective place are telling people how to do in.

  10. springer

    Parttimeaz, you are right, and the same thing is happening in good ole SD. People are appointed who have no qualifications for the job, but they are friends of friends or whatever and get the job. Meanwhile the rest of the division/department is left to carry out the duties of the division/department while the appointee tries to avoid looking as incompetent as he/she is. And the people of SD are the worse for this practice. Any ideas how to change this????

    1. parttimeaz

      shot guns are not allowed!!!!!!!!!!!!!!!!!!!!!!!!!!!!
      People have to vote for those who will serve the people not the ones who dance to the tune of a few choosen people/the party…

  11. CaveMan

    Hey look friends this does not require rocket science to accomplish in cutting the size, growth, and appetite of the Federal Government. The Governor and the legislature in SD agreed in the last session that running a structural deficit cannot go on forever. They cut the 10% overhead looming over their heads and balanced the budget without anyone going postal, dying or losing their jobs. Yes some were asked to take a pay cut in order to maintain their job security but most would agree that government jobs had a very nice cushion built into them to start with. Obama will now ask for Stimulus III and turn the conversation into paying down the debt by making those horrible rich American’s and American Corporations pay their fair share. Lets prove we are not all idiots and vote the first ever black President; which proved we are not racists, out of office next November before he turns America into a third world country!

  12. springer

    I fear that it’s too late to solve our fiscal crisis with the signing of this “compromise” debt bill. O is given the power to raise the debt ceiling over $2 million dollars, which he will likely use to buy votes for 2012. Any supposed cuts in this bill are smoke and mirrors; they might be a reduction in future spending, but do you really think anything will really be cut? Any fraud, duplication of agencies, salaries of fed employees?? ha! And what limits does this new super commission have? This is truly gov’t run amok and past amok. Politics at its worst.

    1. Job Creator

      McConnell did a brilliant job negotiating some of the points. For instance, the no-fillibuster rule does not pertain to revenue increases – only to cuts.

      Republicans won this one big. Just remember the old adage – be careful what you wish for…

  13. springer

    Sorry, the debt ceiling raise is 2.4 trillion! Happy birthday, Obama.

    And I am so tired of O’s blaming the rich for not paying their share blah, blah. He is not above using the rich for his own birthday party at some exorbitant cost per plate for fund raising. Hypocrit and worse.


Leave a Reply

Your email address will not be published.