Tag Archives: jobs

Questions

I get tired of beating the same dead horse, but the Star’s story this morning about the Litebox episode–a piece of real reporting that is becoming increasingly rare–raises additional questions.

The story makes vividly clear how slapdash the City’s vetting process has been, and how politically motivated the decision to announce “job creation.” But the story makes a bigger point, albeit implicitly, about the entire policy of “buying” jobs for one’s area by offering financial incentives to companies that will promise to move or expand.

The obvious arguments against such efforts are familiar: it puts government in the position of helping some businesses but not others that may be their competitors, which troubles those of us who believe in real markets; and it is a zero-sum game overall, since the company that moves its company from Ohio to Indiana is not creating more jobs–it is simply moving jobs from one place to another.

But the Litebox fiasco pointed up a problem I hadn’t previously considered. Even if competent people are running these programs–clearly not the case here–they are unlikely to know enough about the technologies and economic realities of very different industries to make truly informed decisions. This may not have been the case when local officials were competing to attract an automobile factory, but the same technological and cultural changes that increasingly challenge tech businesspeople and that make investment decisions risky even for savvy and knowledgable investors make it virtually impossible for government officials to accurately gauge the viability of tech business deals.

When you add in the inevitable politics involved–the huge pressures to score political points, to look like you are delivering on your campaign promises–it’s no wonder that the jobs don’t materialize. As the Star pointed out, even companies with sound performance records and none of the red flags that accompanied the Litebox proposal have more often than not failed to deliver on their promises.

It’s time to rethink these incentives. Even in competent administrations, as currently structured, they are bad public policy.

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My Very Own Economic Fantasy

Well, I see from my morning paper that the Congressional GOP is proposing to address the national debt by slashing funding for such frills as home heating assistance and job training. Our compassionate conservatives do remain adamant about protecting wealthy “job creators” from any additional taxes, though.

This shouldn’t surprise anyone; the GOP’s current ideological rigidity has proven impervious to evidence suggesting that keeping tax rates ridiculously low does not spur job creation. As many rich people will confirm, they are more likely to create jobs when poor people have the means to purchase their goods.

As long as those in Congress are playing fantasy economics, let me offer my own fantasy prescription for what ails us.

We have two big problems right now (okay, we have dozens, but I don’t have solutions to all of them): the erosion of America’s already inadequate social safety net, and the lack of jobs, especially for people who don’t have specialized skills. What if we created a true safety net, consisting of a basic income level for those falling below a set poverty level and single payer medical coverage for all of us? And what if, as part of that income support, we required the able-bodied to work for the government? I can think of all kinds of jobs we could create that would improve our local communities: taking care of our parks, assisting teachers in our schools, cleaning streets and alleys, tutoring…the list is endless. At the state and federal level, jobs could include repairing our deteriorated infrastructure, a la FDR.

This should pacify the folks who believe that anyone needing public assistance is by definition a parasite (somehow, their own use of Social Security, Medicare, police and fire, public streets, etc. doesn’t count as government assistance). And it would put people who need work in jobs that need to be done, but aren’t being done because the ideologues have been busy trying to fire every public worker, on the theory that someone working in the public sector teaching our children or protecting our property or overseeing the construction of our highways or administering our tax system doesn’t REALLY do a job–that only work in the private sector “counts.”

We all know this won’t happen. Instead, we’ll just protect the wealthy and screw the unfortunate. Welcome to the brave new America, compliments of Congress.

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Why Evidence Matters

Steve Benen has an important post up today at Political Animal, discussing the GOP’s recently-unveiled and badly misnamed “Jobs bill.”

As Benen points out, “the jobs agenda, such as it is, is practically a conservative cliche: the GOP wants massive tax cuts for the wealthy, deregulation, more coastal oil drilling, and huge cuts to public investment. Republicans are confident this will work wonders, just as they were equally confident about the identical agenda in the last decade, and the decade before that, and the decade before that.

Indeed, the most glaring problem with the GOP jobs agenda is that it won’t work, but nearly as painful is the realization that it’s already been tried, over and over again, to no avail. They either haven’t heard the famous axiom about trying failure repeatedly and expecting a different result, or they don’t care.

The agenda is the agenda: tax cuts for the wealthy, deregulation, cut public investments. Good times and bad, deficit or surplus, war or peace, it just doesn’t matter.”

The entire post is well worth reading.

Way back when I became politically active, I bought into the theory that tax cuts for the wealthy would spur investment, and that investment would create jobs. It made a lot of sense; unfortunately, the evidence is pretty overwhelming that it doesn’t work that way.

The ability to change ones opinion when faced with new evidence is how humans learn and thrive. When people “double down” on beliefs even when faced with facts debunking those beliefs, we call that a delusion.

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Spin Cycle

I get so disheartened listening to political arguments about health care reform.

It’s not that I am a big fan of the bill that finally passed. I would much rather have seen “Medicare for All,” for policy reasons not germane to this post. But I have been astonished by the venom that the bill has engendered. It’s bad enough that crazies like Glenn Beck compare Obama’s effort to provide health care to the uninsured with Nazism. The despicable lie about “death panels,” hyped by Sarah Palin and her ilk, was equally odious. But perhaps the most annoying of these efforts at disinformation has been the recent effort by presumably serious GOP lawmakers to persuade the public that the Affordable Care Act–which they dub sneeringly as “Obamacare”–is a “jobs killer.”

This all started when the Congressional Budget Office reviewed the Act. Along with concluding that the reform bill will reduce the deficit significantly over the next ten years, the CBO noted that the measure will allow a number of people to leave the workforce. Congressional Republicans immediately cited this as evidence the Act was a “job killer.”

What the CBO found, however, had nothing at all to do with the number of jobs. It had to do with the number of people who are currently working only because they need affordable health insurance.

In other words, there are people who are only working because they desperately need employer-sponsored health insurance. These are people who have the means not to work full-time, if they have access to a health insurance market that currently shuts them out. Many of these workers will choose to retire early because they will now be able to buy their own health insurance.

This is what Republicans mean when they say that health care reform is ‘destroying jobs.’

There’s a reason many of us despair of ever having reasoned, rational discussions of policy. When ideology and political posturing trump reality, the common good–not to mention common sense–gets lost in the spin cycle.