Sep 12, 2011

Obama Jobs Bill Is Just Another Stimulus Package

Fred DeRuvoBy Dr. Fred DeRuvo

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As Democrats and Liberals will attest, this “jobs bill” – which must be passed right away, according to Mr. Obama – is the next best thing to buttered bread. They will point out that new jobs will be created and that of course is a good thing.

What they will dutifully ignore is the fact that this so-called jobs bill does not create long-term, new, private sector jobs with staying power. All it does is give more government money (tax payer dollars) to state and local governments so that more teachers, police, and fire fighters can be hired.

Please do NOT misunderstand. While those jobs are extremely important, they still do not represent private sector jobs. Private sector jobs are those that are created by private companies and not funded by government, tax dollars. When jobs are created via government funding, this merely means that tax payer dollars are used.

I realize that Mr. Obama said this jobs bill will not raise taxes and will be paid for by corporations, etc., but that is not being truthful. He is counting his chickens before they hatch. In order to get this jobs bill going, massive amounts of Federal funding will be needed.

President Obama, accompanied by Vice President Biden and others, holds up a copy of his American Jobs Act during a speech at the White House on Sept. 12, 2011.In essence, this jobs bill is merely another stimulus package – handing out money at the cost of the tax payer. It is a re-election ploy. The problem of course (besides the heavy reliance of tax dollars) is that when those who are fiscally conservative start really looking at the jobs bill to determine just exactly what’s in it, they will likely find things that they do not like. Because of this, they will tend to not want to pass the jobs bill. Because of that, they will be blamed for not passing it and Mr. Obama will be able to say that he “tried” to pass a jobs bill, or this or that other bill, and the “party of ‘no’” came against him. People say ‘no’ to Mr. Obama’s ideas because they are not good ideas. They are not good ideas because most of his ideas rely too heavily on government monies.

Relying on the government has never been, nor ever will be, a formula for success. Most don’t care because as long as they work – even if that means for the government – they are happy. Who can blame them? People want to work. The “payoff” though comes later when personal income taxes have to go up to pay for all the things the government wants to do.

In California – the state we just left – Gov. Brown has passed the state version of the Federal DREAM Act. This allows illegal aliens to obtain financial aid for college, etc. I’m assuming – like everything California does – aid will go to illegal aliens efficiently, whereas actual legal residents who earn a living and make over a certain amount will not have a chance at it, though their taxes will now legally pay for illegal aliens.

So instead of balancing California’s budget, Brown and legislators are far more concerned about finding ways to spend more money than the state actually has available. This is nothing more than a political process that points to re-election.

This is essentially what Mr. Obama is doing whether anyone thinks so or not. If Mr. Obama really wanted jobs in the private sector, he would encourage Congress to provide a “stimulus” for private sector jobs so that people would be employed and receive paychecks that did not rely on tax dollars. Moreover, he would encourage Congress to pass laws that made it easier for corporations (small and large) to expand their companies, which would enable them to hire more people. Since corporations do pay taxes, those taxes then would go to hire more police officers, teachers, and firefighters. Instead, Mr. Obama is simply circumventing the companies that create private sector jobs and using tax dollars from the existing pool. This makes no sense, unless it is being used as a political ploy for re-election.

I watched a few minutes of the Jay Leno Show and one guest was Bill Mahr. Mahr is funny except when he’s talking about politics. He used all the worn out phrases and Leno and the audience laughed as if it was the first time they heard any of it. The problem is not the party of 'no' as people like to call it. The problem is politics from the White House and especially the Oval Office (or is that the office on the 2nd floor of the White House with the big screen TV tuned to the sports channel?).

Simply put, spending MORE tax dollars without creating MORE private sector jobs simply ADDS to the out-of-control deficit. How does that help our economy? It doesn’t. Unfortunately, those who disagree with Mr. Obama’s policies will continue to be called “the party of 'no'” or “racist” instead of what they truly are: fiscally conservative.

Related Links

Obama proposing tax hikes to pay for jobs bill - Reuters
Cantor warns GOP will oppose any stimulus spending in jobs bill - The Hill
Obama Jobs Plan Puts Strain on Deficit Committee - FOX News
Rush: Obama's Jobs Speech Misleading -
Bank of America to Slash 30,000 Jobs Under New Plan - Bloomberg