Obama’s Worthless Jobs Speech

Obama went on national television yesterday after the market closed to announce a plan to create jobs. That was another waste of time and a disservice to the economy. The DOW dropped 303.68 points at the close of today’s trading.

Obama once again demonstrated he is clueless when it comes to capital. Perhaps I am the one clueless. Nonetheless, let me outline:

1. Jobs follow capital spending.

2. Private capital spending creates jobs that lead to earnings which in turn lead to more new jobs and new tax revenue.

3. Government capital spending creates dead-end jobs. For example, modernizing schools and infrastructure renewal by the government are not profitable and will not create new jobs or new tax revenue after they are completed. Federal jobs program is a form of social welfare, an addictive drug that creates dependency on the people who feed on it.

3.1 Leave funding for schools and infrastructure to the states and municipalities by issuing municipal bonds. Let these decisions be made locally and not in Washington.

I sent to Obama's campaign office an e-mail a week or so ago, making the suggestion I had posted on this blog on August 13th under the title “Two Simple Fiscal Policies To Match Bernanke's New Monetary Policy.” The people there should read that carefully. There was no cheap $4,000 tax credit cap for hiring unemployed workers by businesses. There was a $100,000 tax credit cap by anyone hiring a new worker. Also, there was no restriction on hiring of new workers, whether or not they have been unemployed 6 months or longer because that is for the private sector to decide, not the government. This requirement is absolutely stupid because companies usually hang on to their best employees until the very last moment when they cannot afford them anymore. Nonetheless, Obama plans to send the recently terminated star employees to stand in the unemployment line in favor of second and third tier workers. Is this socialism? I suppose Obama does not support capitalism since he has been a beneficiary of the public sector for too long, has no entrepreneurial experience (oh "my bad," he wrote two books to raise money for his 2008 presidential campaign) and is likely intimidated by those who have. Apparently a majority of those in his cabinet maybe in the same category as well, see http://blogs.ajc.com/kyle-wingfield/2009/11/30/obamas-cabinet-this-graph-explains-a-lot/

Yet there is a contradiction. Obama wants good schools to provide a good education for Americans, so that the more ambitious, more educated, more talented and more capable can stand in line for work behind those less ambitious, less educated, less talented and less capable and watch them compete with the smartest in India and elsewhere in Asia? Brilliant.

I could go on and on and dig a deeper gutter for Obama's jobs plan but who am I to criticize and give advice to someone so charismatic and articulate? Barack Obama is the most powerful person in the world right now and he can do pretty much whatever he pleases.

I hear that on September 11, 2011, President Obama might be together with his predecessor GW Bush at ground zero. I ought to be able to tell them apart if I happen to see a picture but it is becoming more and more difficult.