President Obama held a forum last week on creating new jobs, admitting that he didn't know how to do this.
I would agree with him on this: obviously, the stimulus spending hasn't created nor saved any jobs in any number.
He neglected to invite conservative, pro-free market groups such as the the U.S. Chamber of Commerce or the National Federation of Independent Businesses--instead, those in favor of White House economic policies were part of the summit. http://www.washingtontimes.com/news/2009/dec/02/obama-policy-critics-not-invited-to-jobs-summit/
So, what was the end result?
Mr. Obama suggested several things:
1. One year freeze on capital gains tax for small businesses.
This would be of assistance. But a real help for businesses would be elimination of capital gains tax (something Congress just increased last week). Businesses (and individuals, too, for that matter) have already paid taxes on this money. Let small businesses keep their hard earned money and pass it on to future generations.
2. Tax incentives for new hiring. Sounds pretty good, but an unexpected consequence could be the firing of long term employees in order to take advantage of these tax breaks.
3. Using TARP money to aid small businesses. In all probability, small businesses won't want to end up beholden to the federal government like the banks that have accepted federal money. But the biggest problem is that BY LAW, the TARP money cannot be spent on anything but banking industries!
(You know, why doesn't someone proof-read these speeches?)
4. The so-called "Cash for Caulkers", which will pay individual homeowners for updating the weatherproofing on their houses. I guess if you are a caulker, you'd benefit, but I fail to see this generating a huge number of new jobs.
5. New spending on infrastructure (such as bridges, roads, ports, railways, etc). I suppose this may lead to some new jobs.
6. More assistance for the unemployed. I truly fail to see how this will create new jobs.
According to Fox News, Mr. Obama stated, "We were forced to take those steps (to jump-start the economy) largely without the help of an opposition party which, unfortunately, after having presided over the decision-making that had led to the crisis, decided to hand it over to others to solve," 'starting his address with a history lesson on the roots of the recession.'
I will shortly give some real incentives for job creation and growth.
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