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Jobs: The How To Create Them Conundrum

October 14, 2010
by Paul Jones

So it seems that every politician worth his/her stump speech is harping on job creation.  I never really paid much attention to the blather until I saw this while in NYC over the weekend.  The heated race between Dick Blumenthal and Linda McMahon for a US Senate seat in Connecticut is one of the better ones to watch in the US this election cycle.  Kinda reminds me of the Jesse Helms School of Electioneering.  The question posed by Ms McMahon to Mr Blumenthal is how exactly do you create a job.  You can see for yourself how the answer played out.

So I ask anyone out there.  How does one, who is not a business owner/manager, create a job?  Last time I checked, politicians do not employ many people.  So what do we, as the voting public, expect out of any politician, incumbent or challenger(s), to really mean when they harp on creation of jobs?  It has come down to a chicken or the egg problem.  The consumers, (us) need cash to spend, to get the flow of goods and services moving.  The producers need cash, from us the consumers, to make more goods and services.  Basic economics right?  But if we are not spending, due to any myriad of reasons, then producers reduce inventories, which shuts lines etc.  (not considering most crap we buy is imported).  Loans?  Yes, if you don’t need the money.  Credit still tight.

Risk, unless you are an overbonused Wall Street type, is a bad thing.  No one is wanting to go out on a limb and try to gamble on any capital expansions.  Job creation is a result of expansion in a market, so something has to be a catalyst.  I sure do not know the answers. I do know what we have had over the past few years, ain’t it.  I am also smart enough to realize that we can fall economically overnight, but the rebuilding, takes time, and effort.

3 Comments leave one →
  1. October 14, 2010 11:29 am

    A few things can help, like rewarding companies that create jobs here and penalizing those that ship jobs overseas. We still have a tech boom going on with e-reading devices and phones, but the jobs created from manufacturing those products are mostly in China.

    • October 14, 2010 11:52 am

      Hi Ben, thanks for the comment!

      I do believe that we need to encourage the onshoring of more jobs, and I think we will see that bear out, with unrest in Mexico, and China becoming not as dependable. However, you are right in that to speed the process along, there needs to be a reward/penalty system in place.

      Another frustrating thing I think, is a lot of talk, and no real action.

      • October 14, 2010 1:35 pm

        The Democrats introduced bills that would do that but the Senate Republicans blocked it. EVERYTHING needs 60 votes to pass in the Senate because they just routinely filibuster EVERYTHING.

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