There’s been tons of talk and debate about jobs on a daily basis for at least the past couple of years now and with no quick, concrete solution. That should give us all an idea of just how complex and daunting such a task can be. Yes the government can and should create an environment that is job friendly but we live in a global economy. What this means that is everything is inter-dependent. If for example the US economy does well but Germany’s economy is not well, it will impact our economy to some degree and visa versa. The throw in a few handfuls of other countries that are having economic issues and one can clearly see that this is a global problem that the US cannot resolve all on it’s own.
House Republicans believe they have the answer to everything, including jobs but they only recently have unveiled a new set of jobs proposals that are aimed at stripping regulations and easing the tax burden business. After the economic calamity over the last couple years that we’ve endured, is that really a smart thing to do?
President Obama has entered this fray with his own jobs plan and the announcement of Alan Krueger as his nominee to lead the Council of Economic Advisers and said his plan would immediately help middle class families and would help business put people to work again.
It kind of hard to tell whether either side is posturing for political showmanship yet again or if they really mean it this time and clearly there are pros and cons to any plan but let’s look at the latest numbers from the Intuit Small Business Index:
35,000 Small Business Jobs were created – at least we’re going in the right direction up (if only slightly)
Quick stats for August:
0.18% employment increase
35,000 new jobs created
2.2% equivalent annual growth
540,000 jobs created since October 2009
0.08% compensation decrease
0.3% hours worked decrease
With still roughly 400K people seeking unemployment benefits each week, although a step in the right direction, it is too small of a dent to be noticeable and there’s no miracle “cure” for this jobs “disease” unfortunately.
I am an investor and have a small business myself (www.sgbizservices.com) and these plans overall won’t help much if at all unless they contain the things that spur growth. Some of these include: Tax credits, Grants and more loans to small business, increase in lending activity, rules written in which businesses can write off more expenses with ease and this is just for starters. It’s going to take a combination of things and some genuine creativity on everyone’s part to find a cure for the sick, anemic job growth. I do not think all regulations should be loosened in fact some that were loose and caused the economic mess need to be revisited and tightened up and everyone can agree on that.