Thursday night, before the kick-off of America's most popular professional sport (Green Bay Packers v New Orleans Saints) , Obama will attempt to claim the spot light. He will give an address to a joint session of Congress, meeting in the House of Representatives. The speech is ostensibly about jobs, and his proposal of a $300,000,000,000.00 additional spending infrastructure program. Every dollar is to create jobs. That's the problem. From Romney on the Republican side with his buddy Perry, to Obama and too many others, it is always about jobs, jobs, jobs. "Where's my job?" "I want a job!"
Jobs are not supplied by businesses, contrary to the obvious intent of the aforementioned points. Jobs are certainly not to be provided by government (examples are too pervasive to list in 'corrupt' countries of nepotism and back-room deals). A job is what one holds down when WORKING for a business, helping it produce goods or provide services that are sold above cost resulting in a profit for the firm. Our political culture, and its lap-dog media (CNN, MSNBC, FOX, et.al.) have foisted this world-view of jobs as a commodity to be produced and consumed by households like it were a car or bag of Doritos.
There is the obvious impact upon the psychology of the individual who is out of work looking for a position that will pay him. Instead of the perspective of seeking employment, or "finding work", he is looking for a job. See the difference? "Work" is a nasty word in 21st Century America. It implies sweat, inconvenience, and sacrifice of one's precious leisure time. A job on the other hand, it is that consumable commodity, and to no small degree, a status symbol as significant as a Lexus is to personal transportation. So, the individual looking for work is selling his services, expertise, abilities to the company in turn for a wage. The person who want a job is not much different in perspective than the lady pushing the shopping cart down the aisle of the grocery store looking for a deal on stewed prunes. And yes, it is just as attractive a proposition to the prospective employer to see so many people apply to get their job instead of coming to find work and produce.
Time to get to work, America.
Scarcity, Opportunity Cost and Competition impact our decision-making moment to moment. This makes economics the basis of life as we know it, after God. Nothing that people value is free, someone pays the cost. To gain that thing of value, scarce resources are given up and cannot be given up again for a different thing of value. And we all are competing to capture those scarce resources.
Won't the incentive of all the tax breaks and regulations he, Obama, is offering allow businesses to offer a position for a potential worker to fill? As stated in the speech moments ago..
ReplyDeleteYes, and no. Businesses thrive in an environment with stability, with a higher level of certainty. With the 'winds of change' (from the healthcare laws to threatened increases in multiple regulations) blowing, businesses hunker down, and are risk-averse overall. That's why the general level of cash reserves major corporations are holding are so high. Specifically with regard to the tax incentive, it is too short-term. Great idea, but needs to be longer, like the "Bush Tax Cuts" limp along from year to year, need to be relatively permanent or obliterated.
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