Jobs Summit Farce
What else can you call a one day–one day–conference on “creating” jobs that was hosted by a White House with less 10% of its cabinet members having any private sector experience to which neither the U.S. Chamber of Commerce nor the National Federation of Independent Business nor the National Association of Manufacturers was invited? (The lesson there is that if you criticize Obama, then you lose your seat at the table.).
Today I saw a FOX News business commentator call it political theater while The Anchoress calls it The Job Summit Theatricale and Michelle Malkin calls it a Dog-and-crony show (Michelle says it is the 12th summit of the year. I wonder if she included the Beer Summit in her tabulation?). All in all, I sense a little widespread skepticism.
By leaving the U.S. Chamber of Commerce and the National Federation of Independent Business (NFIB) out of the Jobs Summit, Obama reveals not only his pettiness and lack of true concern for job creation, but his ignorance of what makes America work. Newt Gingrich said on FOX News that the NFIB is the largest organization that represents small businesses. In Crashing the White House Jobs Summit: Small Business Has Been Left Out of the Recovery, Maybe That’s Why There Are No Jobs, David Weidner mentions the Small Business Association was invited today, but it is a government agency whose administrator is a presidential appointee. He states that other representatives of small businesses were there today, but does not mention their names. Weidner writes on the importance of small businesses to our economy:
Small businesses are the engine to any economic recovery….
Small businesses have generated 64% of all the new jobs created in the last 15 years and employ half of all U.S. workers, according to the Small Business Administration….
Small businesses do all that even though the game is stacked against them. For every six small businesses created in a year, five will close. Small businesses face higher costs. Banks charge them more. Landlords charge them more. And the government charges them much more….
The evidence may be overwhelming, but it hasn’t influenced policy nearly enough even in the busy Obama administration. Actually, the opposite has been the case. The government’s decision to not bail out CIT Group Inc., a primary lender to small businesses has taken away a big source of small business financing….
The SBA [Small Business Association] has been in talks with the Treasury Department about using spare bailout funds to help small businesses, but no plan has emerged.
In November, The Foundry Blog of The Heritage Foundation highlighted what those with common sense know:
…government spending cannot create economic growth. More government spending, whether financed by taxes or borrowing, only takes money from one sector of the economy and transfers it to another. The government creates no new spending power when it redistributes money so it creates no new economic growth.
The Foundry, in New Study Shows Tax Cuts Most Effective Stimulus, cited a study done by Harvard economists Alberto F. Alesina and Silvia Ardagna, “Large Changes in Fiscal Policy Taxes Versus Spending.” (pdf document. Note that The Foundry Blog link to the study does not work. I have corrected it.). In their abstract, Alesina and Ardagna write:
Fiscal stimuli based upon tax cuts are more likely to increase growth than those based upon spending increases. As for fiscal adjustments those based upon spending cuts and no tax increases are more likely to reduce deficits and debt over GDP ratios than those based upon tax increases. In addition, adjustments on the spending side rather than on the tax side are less likely to create recessions.
This may be obvious to you and me; to politicians in Washington, D.C., not so much. The Foundry comments:
In addition to their findings that tax cuts are better at promoting economic growth, Alesina and Ardagna found that spending-based stimuli are actually associated with lower economic growth rates.
To reach their conclusion, the researchers studied major changes in fiscal policy in 21 countries in the Organization for Economic Cooperation and Development (OECD) – a group of the most economically developed countries in the world – between 1970 and 2007….
The real-world and academic evidence is clear that government spending-based fiscal stimulus does not work. Congress should heed the findings of this important new study, and the proof right before its eyes, that spending more money does nothing to help the economy. It should come to this realization before it embarks on another stimulus package predicated on more spending instead of marginal tax rate cuts.
If it is serious about helping the economy and creating jobs for those out of work, Congress should put aside its ideological predisposition to spending and lower marginal tax rates to get the economy moving again and put unemployed Americans back to work.
The Anchoress provides her usual combination of astringent and hopeful remarks:
President “Duality” Obama wanted his pointless but flashy “jobs summit” to be grounded in reality, not “at 30,000 feet.” He wanted to hear “details” and “real solutions,” but cautioned that nothing much would be changed by the “summit.” He said the private sector was the only way we’d get out of this mess, but that the private sector is the problem, because small businesses are greedily looking after their own survival, rather than hiring more people that they’ll only have to fire later, when the government raises their operating costs into the stratosphere.
Barack Obama – who is nowhere near as good at triangulation as Bill Clinton was- has never worked in the private sector, and – as indicated by this chart– he has no appreciation of it; he has no idea what it means to be a businessman, and to offer goods in order to create profit, which creates jobs, which create more small business -all of which generates tax revenue….
Honestly, after listening to Obama, today, I comforted myself by remembering that sometimes seemingly negative things must happen, in order for positives to come about; that if Rudy Giuliani had not dropped out of a senate race against Hillary Clinton, he’d have been in Washington D.C. on 9/11, and not where he was needed.
Things happen for reasons. It’s not always easy to remember that, though, when you are out of work, and the President thinks the best way to address that is by dissing small business owners and putting on a show.
In the comments the other evening we were discussing executive ability. An executive who is working for the good of those he or she leads understands the task that needs to be done and calls in people with expertise for advice and assistance–even those who may be blunt with unwelcome words.
Politicians seem to be unable to grasp that cutting taxes to help businesses thrive will actually generate more tax revenue. More seriously, they are adding to the anxiety and difficulties of millions who are without work. Rather than doing what they can do make conditions as favorable as possible for businesses to grow, the Obama Administration and the Democrats in Congress continue to indicate that they are either incompetent, ignorant, malevolent or some combination of the three when it comes to helping the economy and encouraging job creation.
UPDATE: AllahPundit writes:
A Hot Air commenter reported that tonight’s FOX panel said Obama plans on making another prime time speech about this jobs summit. Summit-Speech-Summit-Speech, Lather-Rinse-Repeat.
H/T: Newt Gingrich, FOX News Interview by Sean Hannity; The Washington Examiner; The Washington Times; The Washington Post (via Right Wing News); FOX News; The Anchoress (via Hot Air); Michelle Malkin; U.S. Small Business Administration; The Wall Street Journal; The Foundry; Alberto F. Alesina and Silvia Ardagna, “Large Changes in Fiscal Policy Taxes Versus Spending”; Hot Air.