Friday, August 19, 2011

Government and Jobs

I have to laugh at politicians - especially in the GOP - going back and forth about their beliefs regarding government and job creation. Half the time the political leaders - especially governors such as Rick Perry of Texas - are claiming they "created jobs," and the other half of the time they are claiming the government doesn't and can't create jobs. That latter position, of course, excludes all public service as well all the private sector jobs that come from government contracts, especially infrastructure spending.

Of course, the GOPers will respond that their create jobs by getting out of the way of the business sector. The reality is that policies can be more business friendly - as companies will seek incentives and subsidies to relocate or build a factory or train new workers, etc. However, as we've see over the last decade, a pro-business policy - especially tax and regulation policy - doesn't mean it's pro-jobs. In fact, corporate profits, executive pay, dividends, and cost cutting are proving that the new rule is "pro-business" often means job losses.

GE is moving thousands of jobs to China - even as the President has reached out to their leadership about creating jobs at home. Of course, GE's job is to make money, and they are free to do it wherever they can. Yet, if their policies have a negative on growth in the US and negatively impact American communities, we should not treat them so favorably. That's why I think any tax cut/deduction/rebate ought to be tied specifically to numbers of local jobs produced. If you cut jobs at home or locate them elsewhere, you lose the tax incentive.

Seems pretty obvious ... but I can already hear the pundits shouting it down.


2 comments:

Happy Elf Mom said...

You hear not one peep of disagreement from me on this. Seriously... bet you almost every REGULAR PERSON on the street would more or less agree with everything you have written here. You should submit it for publication. :)

mazenko said...

Thanks.

I hope you're right.