"The most significant threat to our national security is our debt," Admiral Michael Mullen, Chairman, Joint Chiefs of Staff, August 27,2010

Thursday, December 3, 2009

The 800# Gorilla in the Room

Today the organizer and over 100 of his really smart friends are going to engage in what sociologists call a “circle jerk” and discuss viewpoints on job creation. Yesterday, TheFundamentals modestly proposed the cancellation of this therapeutical nonsense but, alas, our voice was ignored. So, we boldly go forth with more about the organizers “jobs summit.”

Read the following plan summary to be proposed today by a key meeting participant:

1. Extend the lifeline for jobless workers

2. Rebuild America’s schools, roads and energy systems

3. Increase aid to state and local governments to maintain vital services

4. Fund jobs in our communities

5. Put TARP funds to work for Main Street

Can you guess which special interest group is responsible for this plan? Tick – tock; tick – tock. Okay, time’s up. Here’s a clue. You can read the entire plan at: http://www.aflcio.org/issues/jobseconomy/jobs/americaneedsjobsnow.cfm

The AFL CIO thinks that the best way to create jobs in to keep paying people to not work (#1 above) and spend more money on those ever so productive municipal projects and bureaucrats (#’s 2-4 above) and then set up a bureaucracy to take applications from small and mid size businesses and establish a bunch of rules and employ lawyers to oversee their activities (#5 above.)

Is there anything in the AFL CIO five step plan to encourage competition? Is there anything in the five step plan to get people to leave areas where there are no jobs and move to areas where there are jobs? Is there anything in the plan to limit rules, laws, taxes and other forms of government interference with the small and mid size businesses that create jobs? Is there any mention of product and service quality? Product and service features? Distribution? Limits on lawsuits?

Today, the AFL CIO will present its five step plan. They are the 800# gorilla in the room. Their goofy ideas have already spawned the $787 billion giveaway stimulus spending plan that is paying people to not work and paying thousand of municipal and state bureaucrats to interfere with the natural inclination of free enterprisers to create jobs. The AFL CIO wants more of the same. More government spending and more bureaucrats messing up the jobs creation process. The money the AFL CIO needs to fund its five steps will add to the national debt. More debt will bring the country closer to bankruptcy. The closer the US gets to bankruptcy the fewer jobs will be available. What word(s) define those who wish to bankrupt the country? Foolish? Idiotic? Gorilla?

If Mr. Steve Wynn is not in attendance today, who will tell the AFL CIO to go home, lower their wages and benefits and get to work. Who will tell the organizer to stop government spending and reduce laws, regulations, taxes, lawyers and bureaucratic interference with real job creation? Who will tell the organizer that tax credits tied to new American jobs will produce jobs for a fraction of the cost of government spending programs? Who will speak truth to the gorillas and the fools and the idiots?


NDDillon said...

I think that the Fundamentalist misunderstands the current situation. I think an argument against the first point is particularly curious. I presume that the Fundamentalist believes that the meager amounts paid in unemployment creates a disincentive to finding work. I don't think that idea jibes with reality. I know people that want to work, but cannot find employment.

I also question the standard idea of cutting (regulations and taxes) and increasing tax credits to allow the natural inclination of small businesses to create jobs. First, I don't see any evidence, whether in the press or anecdotally, that business owners feel secure enough to hire. Second, there is a lack of credit availability, which is a component of expansion.

I think that a Keynesian approach in the face of a depression, which is what no one wants to admit is occurring, is the most prudent approach to take. If no one else will create jobs, the government should.

As for sending funds to the state and local governments, tax revenues are down. There is no logical way to address the situation of a lack of money and bills to pay other than for these entities to obtain money from the national government. Cutting services would have a negative effect on the recovery that we all look forward to seeing.

Patrick Flynn said...

Since tax revenues are indeed down, perhaps Mr. Dillon would care to share whence the national government is to obtain the money . The dismal answer, of course, is to print it, and devalue the currency, or borrow from abroad. One should realize, however, that if you devalue your currency by printing more of it, less foreigners are apt to purchase it.Also, our debt abroad is so vast as to be almost incomprhensible. Have we reached the saturation point? Many think so.
It has been proven often enough, that if you cut taxes, trim regulation, pare entitlements, and basically get out of the way, the free market will provide abundance for many.
The very idea that we should go hat in hand to Big Brother is repugnant to those still in possession of THE AMERICAN SPIRIT.History teaches us that FDR was a failure to fix the depression, and he followed the path that the current incompetent is treading today. If not for WWII, the economy in FDR's presidency would have been considered a disaster.

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