Rebates on social security taxes will not create any jobs, let alone the 1.5 million to 2 million that is projected. To create jobs in private business we need structural reforms that will permanently make businesses more competitive such as health care reform and scrapping numerous union work rules.
When it comes to public work projects, assuming the projects are needed, the goal should be to get the most work done as possible for the least cost. For example, it would be far better to hire two or three workers for $13 an hour than 1 person for $39 an hour, assuming equal skills.
Given so many skilled laborers are out of work, even $10 an hour would find many takers.
Government spending adds to GDP regardless of what is produced or how much, so fixing 1 bridge or 3 adds the same GDP. If you waste enough money you can have a positive GDP, whether anything is really produced or not.
Most of the first stimulus was squandered and should Obama win approval for his $447 billion plan, most of that will be squandered as well. Tax cuts will help corporate profits but do little for permanent hiring, and prevailing wage laws and union work rules ensure we will massively overpay for infrastructure projects.
Unless and until we fix structural issues, we can expect no job creation, no matter how much money Keynesian clowns want to throw around.
Devil at my Doorstep
Obama's proposals are 180 degrees wrong. Obama wants to drive up labor costs, not because it makes economic sense, but because it is the only way he can possibly be reelected.
What follows is a post written by David A. Bego, President and CEO of EMS, an industry leader in the field of environmental workplace maintenance, employing nearly 5000 workers in thirty-three states.
Bego is also the author of “The Devil at My Doorstep,” a book based on his experiences fighting back against one of the most powerful unions in existence today.
As a guest, post, by permission from Bego, I will dispense with my normal style of blockquotes. Bego's article was written September 5th, ahead of Obama's speech, originally appeared on Union Watch.
Unprecedented NLRB Rulings to Aid Unions by Dave Bego
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance: William's Edge Webinar for November 21st, 2014 | John Ransom
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for November 17th, 2014 | John Ransom