An OP ED submitted by Dr. Alan Phillips on the U.S, Chamber's Plan for Jobs

OPED

DEVELOPING A PLAN FOR JOB GROWTH, THE U.S. CHAMBER’S EFFORT

The administration must develop an action plan in this New Year 2010 for job growth. If the President fails to reference a meaningful proposal for job creation-restoration at his coming State of the Union address, he and the administration will face a challenging future.

On January 12, 2010, the U.S. Chamber of Commerce president, Thomas Donahue in his “state of business” address shared a ten year plan to create 20 million new jobs. This plan, imperfect at best, represents an attempt to address a major under and unemployment employment problem that threatens economic recovery and America's future. Several Chamber of Commerce observations are worth examination, they include;

Removal of trade barriers, expanding exports-I support this concept with two major refinements, jobs must be prohibited from export to foreign nations and trade should function on a level playing field, even if it means renegotiation of some existing trade agreements by the administration might be required.

Elimination of new taxes-maintain them at current levels-To provide incentives for U.S. job creation-restoration, there should be a major reduction in federal and state taxes on corporations, elimination of the capital gains levy, realizing that anything less is not an incentive for companies to create-restore jobs in the U.S. Martin Feldstein spoke to this practice in a May 14, 2009 article in the Wall Street Journal on “Tax Increases Could Kill the Recovery”. He reminded the administration and voters that “Historians and economists who’ve studied the 1930’s conclude that the tax increases passed during that decade derailed the economy and slowed the decline in unemployment. That was true of the tax on corporate earnings and of the 1937 introduction of the payroll tax. Japan did the same destructive thing by raising its value-added tax rate in 1977.”Countries like Ireland limiting corporate tax rates to 12.5% have attracted and created many new jobs and continue to attract businesses.

Build more roads and bridges with private capital-I support infrastructure improvement if it creates thousands of new jobs specifically targeted to projects of state, regional and national importance. The congress should support the adoption of bills such as HR2521 which seeks to establish a National Infrastructure Bank to direct private and public capital to infrastructure construction.

Boost access to capital across all business categories-I support access for large and small businesses to capital if they are known to be successful in creating-restoring jobs and are managed well. Banks must begin to lend to main street as well as small and large businesses in America. The economist for the National Federation of Independent Business has recently observed that “Capital spending is on the sidelines…Spending on capital projects remained at historic low levels, as did the demand for credit to finance such projects.” In short banks must lend not hold!

Remove uncertainty in economic direction. It is true, as the Chamber states, government uncertainty in economic direction is not a motivation for large and small businesses to create-restore jobs. The Chamber’s position however that it is opposed to taxing bank transactions, is one with which I fail to agree, unless such legislation prohibits bank pass thru of costs to consumers and small businesses, and banks continue to limit lending.

The Chamber’s goal of creating 20 million jobs in a decade, though noble, is not realistic in its time frame. Ten years is too long for millions of unemployed to wait for jobs. At least however, the plan is an imperfect effort to address the problem.

Dr. Alan Phillips, Sr.

The Washington Post, For now a show of unity...Michael Shear, 1.17.2010

I want to applaud both former Presidents in addressing this massive devastation in Haiti through their action. In articles in the New York Times 1.14 Section A page 17, and in USA today 1.15, page 12, I called last week for a suspension of political partisanship to address this need. Both Presidents with the encouragement of the administration and President Obama have done what is right and humanitarian, I am proud to be an American!

I have personally condemned in the press the pathetic remarks of televangelist Pat Robertson. At the time of this great tragedy to humanity I am appalled as well at the shallowness of Rush Limbaugh's comments about aid to Haiti.

Nicholas Kristof's article in the January 15 issue of the New York Times entitled--How Generous Are We To Haiti? 92 Cents Per American Per Year (in 2008), is disappointing. Admittedly, corruption in Haitian leadership-government officials through the years has not helped the nation, yet according to the Center For Global Development's David Roodman, the U.S. over the last three years has given 2.32 per year per American. Canada by contrast gave 12.13 per person to Haiti over the same 3 year period. We rank behind, Luxembourg, Sweden, Ireland, Switzerland, Spain, Belgium and perhaps others. This is not a record of which we should be proud.

Perhaps what Limbaugh really wanted to say on Haitian assistance was best framed by Charles Dickens's character Scrooge decades ago, ARE THERE NO PRISONS,WORKHOUSES? Frankly, America is far better than that. Our Presidents have proven that we are better.

NY Times, 1.16.2010, Paul Krugman, BLIP

Saturday, January 16, 2010
January 16, 2010, 3:38 pm

Blip, by Paul Krugman
Calculated Risk beat me to this: the economists at Goldman Sachs are now predicting 5.8 percent growth in the fourth quarter. But they also say that the headline number will be highly misleading: two-thirds of the growth will be an inventory bounce, with final demand growing only 2 percent. In short, it will be a blip. summary

Post, by Dr. Alan Phillips

Paul,

Blips and sprouts will not help the administration face, ameliorate, or fix the economic tsunami we are experiencing in the United States. Until the administration and its allies place job creation and restoration at the top of their list, we will remain on a slippery slope to deeper recession and much higher unemployment consequences. Blips are akin to some of the latest employment data being reported from D.C. resulting in unreliable rhetoric producing false optimism.

Job summits which window dress our economic desperation by modeling optimistic models are not helping with the wakeup call needed for this administration. The nation and the world await this President's emergence from hibernation. Hibernation may be good for a bear (market) perhaps but what we really need soon is a bull (market).

Dr. Alan Phillips
Bloomington, IL