Friday, December 4, 2009

Jobs Summit

Spent the last day travelling from Fayettville North Carolina.  The radio, set to mainly news shows, droned endlessly about President Obama's jobs summit in Pennsylvannia. A summit that specifically excluded the Chamber of Commerce, and the Association of Manufacturers.
This after two or three months of pressing policies that are universally (excluding the executive branch) presumed to apply more drag on employment.
I've said it before the actions of president's don't affect the positive and negative flows of economy.  They can and do install their pet mechanisms the merely serve to phase the results, not change the outcome. 
Billions of dollars were to be pumped into the economy in the last year. The result was non-existent, no different thatn I expected.  It has been easy for the goverment to collect money, the banks are not significantly loaning money.  The government has no competition selling their notes.  This is for the moment ok, but when business becomes more expansion minded there will be more competition for those dollars, interest rates are going to increase, and drag will be applied to the growth by excess cost for interest.
Back to the start, here we have discussion about creating jobs that does not include parties that represent small business or the manufacturing sector.   So in this meeting we have, what Democrats, Unions and academia?  I hate to be cynical, but this group reminds me of the three monkeys, one with the eyes covered, one with the ears covered and the last with the mouth covered.
They weren't there to create new ideas or even hear new ideas, they were there to show that they cared.  I have no doubt that they care, but I also have no doubt that they have no freaking idea of how to create jobs.
Here is my idea, said before, change the tax code to a flat or FairTax style.  The system reboot would permit real cost to value analysis of monies spent and remove the repressive tax system that when combined with high US labor rates makes new part manufacturing in America very difficult.  If manufacturing is not encouraged by revised taxation, new jobs will only be developed in the service type industries.


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