Jobs Summit Farce

2009 December 3
by INC

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:

Contempt for this pointless PR stunt is sufficiently bipartisan that TNR’s take on it today sounds almost as harsh as the Journal’s.

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.

31 Responses leave one →
  1. 2009 December 3 4:17 pm
    [1]
    mulletover permalink

    Obama’s job summit was pr. Nothing more.

    The economy is the number one issue for Americans, and is getting the least attention from this administration.

    His attack on capitalism continues unabated.

  2. 2009 December 3 4:18 pm
    [2]
    Wylie E. Coyote permalink

    For your drinking pleasure – your BumWine of the evening:

    CISCO!

    http://www.bumwine.com/cisco.html

    “Cisco will make a new man out of you. And he wants some too.

    Our research shows that Cisco is actually the second best tasting of the five great bum wines, especially if you’re having one of those hankerings for cheap Vodka, Jello and Robitussin. We must also note that Cisco is the best of all 5 bum wines at putting the darkest and puffiest bags under your eyes. The nuclear-tinted color of “Cisco RED” is reminiscent of diesel fuel. Most Cisco flavors are named by the fruit flavor that they are trying to emulate, but the one picture is simply called “RED.” This chemical disaster will get your head spinning in no time. A test subject reports, “Strawberry Cisco has a bouquet similar to that of Frankenberry cereal fermented in wine cooler with added sprinkle of brandy for presentation.” The sticky, sickingly sweet taste with a hint of antifreeze really comes through in the repellant taste of Cisco. Avaliable in various flavors, 375 mL and 750mL sizes. Down a whole 750 mL and you had better be ready to clear your calendar as you suffer through Cisco’s legendary 2 day hangover.”

  3. 2009 December 3 4:25 pm
    [3]
    INC permalink

    mullet, you’re right. This administration is all hat and no cattle (as the Texans here like to say).

    I’ve added some info from a WSJ article on small businesses. I forgot to hold back the publish time of the post long enough to get it in.

    If nothing else, this post can serve as talking points for calling Congress.

  4. 2009 December 3 4:46 pm
    [4]
    drdog09 permalink

    If one assumes that the whole point of the ‘Job Faire’ was a pr cover. Then one has to wonder why? The jobs numbers have been looking bleak for months with nothing from the WH. Oh yeah, Carvelle did some polling that shows real perception problems for the Dims. But I don’t think this is the answer.

    My gut is saying that two things are about to occur. 1) Last quarters job report is probably going to go thru final adjustment. It will be upward in unemployment terms. 2) The next job report that is about to come out will be even worse that expected. How much worse, who knows, but maybe North of 11% would not be out of the picture.

    Just my guess.

  5. 2009 December 3 4:47 pm
    [5]
    drdog09 permalink

    And here I thought CISCO was only into network equipment. 🙂

  6. 2009 December 3 4:49 pm
    [6]
    drdog09 permalink

    Hey INC, if ‘All Hat, No Cattle’ doesn’t float your boat, how about —

    All Crack, No Whip ?

    Being you being a Florida Cracker and all.. 🙂

  7. 2009 December 3 4:50 pm
    [7]
    INC permalink

    Dr. D., Obama is such a narcissist, I think he thinks that PR will do it for him with most of America. He’s still in campaign mode–he can’t doesn’t know how to do anything else.

    Also AP in his Hot Air posts says,

    “And more importantly, he got out in front of tomorrow’s big news, which, if JP Morgan is correct, will show unemployment up another two ticks in November to 10.4 percent. Between that and the “stunning” report tonight that consumer sales declined slightly last month after being expected to grow between five and eight percent, he simply can’t afford not to be seen as proactive anymore. Even if his “proactivity” consists of gabbing with Paul Krugman in front of a pair of mikes and a couple of cans of Shasta.”

  8. 2009 December 3 4:51 pm
    [8]
    INC permalink

    Dr. D., 😀

  9. 2009 December 3 5:00 pm
    [9]
    bc3b permalink

    November jobs numbers out tomorrow.

  10. 2009 December 3 5:04 pm
    [10]
    INC permalink

    Hot Air just did an update. Sure enough, Obama will be giving a speech on the economy next week at the Brookings Institution before he takes off for Copenhagen.

    Talking up the economy while you advocate things that kill it is a logical disconnect–but that won’t stop him.

  11. 2009 December 3 5:09 pm
    [11]
    INC permalink

    bc, Moe Lane at RedState links to Jim Pethokoukis’ Twitter:

    JPMorgan predicts 10.4% unemployment tomorrow …news will overwhelm jobs summit if accurate

  12. 2009 December 3 5:17 pm
    [12]

    11. CHANGE YOU CAN BELIEVE IN !!!!

  13. 2009 December 3 5:21 pm
    [13]

    “news will overwhelm jobs summit if accurate”

    Why do you think the “jobs summit” was held today???

    hhhhhhhhhhhmmmmmmmmmmm

  14. 2009 December 3 5:22 pm
    [14]
    janzam permalink

    A very complex post INC! It’s going to take me a while to wind my way around it, links and all!

    However, I wanted to comment on two things that caught my eye.

    First, I think it is assisine that such a small fraction (10%) of his cabinet have any business experience. I saw a graph of this last month, and out of administrations all the way back to Eisenhower, Obama’s has the lowest number of people, with skills in business, than any other president!

    Second, I was astounded when you said this: By leaving the U.S. Chamber of Commerce and the National Federation of Independent Business (NFIB) out of the Jobs Summit… What’s the matter with this guy! These are the very people that should have been at the center of such a conference!

    Anyway, it is disappointing and embarrassing to have such an incompetent “leader” making such flagrant grandiose errors day after day!

  15. 2009 December 3 5:23 pm
    [15]
    janzam permalink

    Eph

    Now let me guess. Perhaps, to buffer the jobs report coming out tomorrow??? Just a “wild” guess, mind you…..!

  16. 2009 December 3 5:34 pm
    [16]
    Wylie E. Coyote permalink

    Dont all of you understand ec0nomics?

    All jobs are “created” by the Government lol

    If they are private sector jobs, well then they can only be “saved” by the dear government from the “greedy” capitalist pigs lol

    So says Karl Marx, Seiu, and CRU lol

    Oh, lord – this socialist have zippo clue lol – I got have another big shot of Cisco NOW lol

    The only hope we have is BumWine lol

  17. 2009 December 3 5:35 pm
    [17]
    INC permalink

    Jan, sometimes I save up links and columns until the time is right! I’d had that Foundry Blog entry in the back of my mind for weeks.

    The economy is of major concern and the WH has done nothing but harm. This was one post I felt needed to have as much information in it as possible.

  18. 2009 December 3 5:37 pm
    [18]
    INC permalink

    Wylie, :-D.

    this socialist have zippo clue

    Is that ever true. All I keep thinking of is the fact that he ran the Annenberg Challenge into the ground, wasted tons of money and the children regressed in behavior. That’s the sum total of Obama’s executive experience.

  19. 2009 December 3 5:47 pm
    [19]
    rightwingyahoo permalink

    As much as I sympathize with the Chamber of Commerce, those guys were pro-amnesty, along with The Club for Growth and WSJ. So, if they had gotten their way, Obama, or many others like him, would have been POTUS anyway, and for a lot longer than 4 years.

    Just sayin’

  20. 2009 December 3 5:49 pm
    [21]
    mulletover permalink

    Romney came out of his burrow (it’s early for a groundhog, eh) today with an op-ed in the USA today. He listed 10 things to improve the jobs picture, and proved he is on familiar ground with the economy.

    Romney plan

  21. 2009 December 3 5:58 pm
    [22]
    rightwingyahoo permalink

    The point is that both parties are bent on destroying the middle class.

  22. 2009 December 3 6:22 pm
    [23]
    INC permalink

    RWY, I realized that when I wrote this post; however, I referenced them solely in connection with the Jobs Summit and not their position on amnesty. The Wash Times mentioned the C of C criticized health care and they weren’t invited today.

  23. 2009 December 3 6:33 pm
    [24]
    rightwingyahoo permalink

    Of course, INC, it is they, and not you, who have opposing positions.

    Were the Chamber of Commerce to get their way on amnesty, Obama, or someone like him, would never have to leave office.

    Now, why can’t they realize that?

  24. 2009 December 3 6:49 pm
    [25]
    gnqanq permalink

    INC – an excellent post full of great information.

    On Rush’s program today he had several small business people call in. They almost all said they were not going to be hiring due to the uncertainty next year.

    As you said INC, ‘zero’ has no clue about a free market economy or any type of economy. He is in a death spiral and is too arrogant to seek real help. He might not make it through 4 years.

  25. 2009 December 3 6:59 pm
    [26]
    Wylie E. Coyote permalink

    Yep, despite the millions of ruined lives the socialist have created they persist in the CrappyCare cramdown!

    http://apnews.excite.com/article/20091204/D9CC79V00.html

    But all the misery they create is A-Ok!

    See, they CARE more then you do!

    They rob from the productive, empower themselves, and give crumbs to the weak and vunerable among us to create dependency…..

    Gee, Boss why dont you stop being so good to me!

    I need a big swig of Thunderbird NOW lol

  26. 2009 December 3 6:59 pm
    [27]
    INC permalink

    Thanks, gnqanq. I think it’s becoming increasingly difficult for Obama to hide who he is.

  27. 2009 December 3 7:05 pm
    [28]
    mulletover permalink

    Obama and Tiger, both going down the toilet at breakneck speed.

  28. 2009 December 3 7:15 pm
    [29]
    gnqanq permalink

    INC – you are correct about hiding who he is. Prior to the election he had no real history (much like Carter). All we had was his words which were damning in themselves but it was all over shadowed by his “I am not Bush”.

  29. 2009 December 3 7:15 pm
    [30]
    rightwingyahoo permalink

    And, the economy must grow in the 2% range just to keep the jobless rate steady.

    We can’t even get to that point.

    We need 4-5% growth if Obama wants the heat off him, and that’s just not going to happen.

Trackbacks & Pingbacks

  1. The Job Summit Theatricale » The Anchoress | A First Things Blog

Leave a Reply

You must be logged in to post a comment.