Monday, April 12, 2010

Jobs Picture Still Looks Bleak

Socialist Professor of Public Policy at UC Berkeley and former Secretary of Labor under Bill Clinton, Robert Reich recently wrote an article in the Wall Street Journal Opinion Section, stating that the "Jobs Picture Still Looks Bleak". Oh really!! Gosh that is a surprise. Reich blames corporations for outsourcing jobs because many companies have used the financial crisis to bring their costs under control by off shoring jobs. That is one of the factors; but here are the rest of the facts. Companies in the United States have finally realized productivity gains that have always been promised from technology investments. As such, it just takes fewer people to do the work needed than was the case five or ten years ago. At the same time, the financial crisis highlighted the need to eliminate redundent positions, grown over time, that often exist in major corporations. Those jobs are now gone, which in one of the reasons corporations are showing good profits and the stock market has experienced considerable gains in 2010.

In addition, the cost of labor and taxes has pushed many jobs overseas. Unions in the US have priced their members beyond any world standard. This is generally true for all fully loaded wage rates in the US, which in India and China are about a third, or fourth of what they would be in the US. And, the combination of state and federal corporate taxes and regulations has also pushed many jobs overseas. Finally, there is a direct correlation between level of education and unemployment. Those without any college are more likely to be unemployed. Robert Reich has concluded that assuming growth of 300,000 jobs a month, which would require consistent GDP growth of 3% a year, it will take 5 - 8 years before we see unemployment fall to a reasonable rate. Reich is correct; but as a Socialist, he just cannot articulate the right remedy to solve this problem.

Robert Reich is a lock step Obama supporter, which means that he supports HealthScare, CAP & TAX, higher taxes on the "rich" and more regulations all of which are job killers. If Reich was intellectually honest, he would acknowledge the obvious. Raising taxes of any kind that takes money out of the economy and particularly from small businesses will not allow the private sector to create jobs. And, adding cumbersome regulations adds to the cost of doing business, which means that companies have less money to hire more employees. Well Dah!!

Reich is a Keynsian economist who favors big government, high taxes and more regulations. Obviously, Reich supported Obama's SwindleUS Plan that has been a complete failure related to creating jobs. Reich even wanted the federal government to spend more. As long as these Socialist Schemes are implemented by Obama, we will continue to have very high unemployment in the United States. The only formula that works is the Reagan formula of lower taxes and less regulation that resulted in the creation of 20 million new jobs in the United States. It really is very simple. California raised taxes by $12 Billion in 2009 and generated less revenue than the year before because various tax increases retarded economic recovery and businesses voted with their feet and left the state, or simply made investments in other states, or outside the US. As such, California is now bankrupt. Why oh why can't these Eggheads see the light and economic history? It is their Socialist Schemes that are retarding job growth and will eventually cause the economic collapse of the United States if allowed to continue.

In order to foster economic growth and bring unemployment down, we must elect Conservatives in 2010 and 2012 who support free market capitalism, limited government, a balanced budget, lower taxes and less regulation, a strong national defense, real energy independence, term limits, the right to bear arms, the sanctity of life and family values. We also must elect Conservatives who support the Constitution, as written by our Founding Fathers, not as contrived by our current Socialist President and former Presidents, Congresses and the Courts. This is the winning platform. Millions of Americans are out of work because President Obama just does not understand Economics 101. We must take back our country. We can do it. We must do it for our children and grandchildren and for the millions of Americans who are out of work because they need jobs today not 5 to 8 years from now.

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