Three cheap ways for Obama to spur job growth
“We should not have to choose,” President Barack Obama said this past week, “between getting our fiscal house in order and jobs and growth.”
If that sounds unobjectionable, that’s because it’s another of those “false choices” Obama imagines to be filling the minds of everyone else in America.
But the solution is not more public spending now and higher taxes later to pay for it.
Corporate balance sheets are flush with cash. Banks have the problem of a “reverse run”: Instead of a rush of withdrawals, they have too much money coming in (which are recorded as liabilities and raise their deposit-insurance costs).
Private money is available. But capital has gone on strike.
The way to get jobs and growth without adding to the debt is not to seize it through taxes or government borrowing and force it into the economy. Washington has tried that.
What hasn’t been tried lately is encouraging private actors to put their money to work on their own volition. Here are three low- or no-cost possibilities for Obama:
1. Make some phone calls.
Not to business leaders, but to his own Cabinet secretaries.
In a recent appearance on Fox News, a former chief economist for the Labor Department, Diana Furchtgott-Roth, said Obama could “make things a lot easier on employers and on hiring” by telling the bureaucracy to stop making new rules that crimp businesses.
“He could call EPA Administrator Lisa Jackson and say, ‘Why don’t we just hold off on those new ozone rules, or clean air rules, until the unemployment rate is down to 7 percent?’ ,” Furchtgott-Roth said.
“He could call his Interior secretary and say, ‘Why don’t we just allow more oil drilling in the Gulf [of Mexico]?’ Because there’s been a moratorium since the BP oil spill — that’s about a year and a half ago.
“He could tell his National Labor Relations Board acting general counsel, Lafe Solomon, ‘Hey, why don’t you just lay off Boeing?’ Because Boeing wants to open a new plant in South Carolina to build [787] Dreamliners, and [Solomon] says they can only a new plant in Washington state, where they have their existing plant.”
The list, she said, is long. “Each cabinet secretary is doing things that impede businesses from creating jobs.”
2. Temporarily lower the minimum wage.
I don’t mean lowering existing workers’ wages. Rather, allow companies to pay additional hires a little less. To sweeten the deal, the government might continue to pay the new worker a portion of any jobless benefits to which he or she is still entitled, to offset the lower wage. This would save the government from paying full unemployment benefits while lowering the company’s cost.
One of the more ill-timed moves by Congress in recent years was that of the new Democratic majorities in 2007 to raise the minimum wage in three steps. Even after the recession hit, the floor for wages kept rising. The higher wages have only hurt the millions of low-paid workers who lost jobs.
In fact, the jobless rate for high-school dropouts began rising soon after the 2007 bill. By this July, it stood at 15 percent — much higher than any other grouping by education level.
The absolute number of 16- to 19-year-olds with jobs in July was the lowest since 1963 — when there were 5 million fewer Americans in that age range.
3. Tear down some houses.
Normally, I would agree with 19th century French economist Frederic Bastiat’s “broken window fallacy.” You don’t create wealth by destroying wealth.
But hundreds of thousands of foreclosed houses are already destroying wealth by bringing down the value of other homes. And the longer they sit empty, the more likely they’ll become uninhabitable anyway because of mold or other conditions.
The feds own about 248,000 foreclosed homes. They should follow the example of some commercial banks and raze a portion of them. This would create truly shovel-ready jobs in an ailing sector, and perhaps end the freefall of home values.
– By Kyle Wingfield
Tell us what you think about the site
Customer Care »
Vacation stops, manage subscriptions and more
AJC Services
Sections
Other Editions
Visitor Agreement | Privacy Statement
© 2013 The Atlanta Journal-Constitution
357 comments Add your comment
Bruno
August 19th, 2011
9:47 pm
Linda–When the Wild Bunch is here, all the rules go out the window. Especially that rule about wrestling.
Hillbilly D
August 19th, 2011
9:54 pm
all words must be spelled correctly
At the risk of repeating myself, it’s a small minded person who thinks a word can only be spelt (and yes that’s a word, consult a large, thick dictionary) one way.
Hillbilly D
August 19th, 2011
9:55 pm
That’s rasslin’ Bruno. (Insert required second sentence here)
Michael H. Smith
August 19th, 2011
9:56 pm
Hillbilly D -
Odd as it may sound Texas has always been something of its’ own possession: It’s not called the “Lone Star” State for nothing. After all it is the only once independent nation to ever entered the union.
Mick
August 19th, 2011
10:02 pm
Heard this tune today-
http://www.youtube.com/watch?v=OSTtreO8Arc&feature=fvst
Hillbilly D
August 19th, 2011
10:04 pm
Michael H Smith
I’ve never been to Texas but have known a good many Texans from all parts of the state. I’d agree they are sort of their own entity. From the people I’ve known, East Texans would be the most “southern”, in manner, culture, etc. They started out as people brought in by Mexico to serve as buffer between the Mexican population and the Commanches. Then things sort of got out of hand.
josef
August 19th, 2011
10:06 pm
Linda
We came to visit with our hero…not to exchange banalities and gratuitous swipes…he might be able to teach y’all a lesson or two in civility…
Michael…
Well, I would argue with you on that one but: one, I’m a guest here tonight and have to remember what Granny taught me
, two: I’ve got a bit of gin in me which might addle my brain a bit and the folks here don’t know me like you do, and three, don’t have my cut and pastes ready 
HILLBILLY
Felt much the same way about Herschel. Texas? I got a chuckle out of that one, too, But I’ve always maintained that Texas is what the South “would have been” had it had to opportunity to define itself for itself free of outside control…that nine years of the Republic…is it the South? I think its more the South than the South!
Mick
August 19th, 2011
10:08 pm
Speaking of wrastlin, here’s one for old times sake-
http://www.youtube.com/watch?v=oQXwSTh93o8
Linda
August 19th, 2011
10:09 pm
Bruno@9:47, Jay’s bloggers believe that man-made global warming is real because Jay said so. They believe that wrestling is real due to the same lack of cognitive reasoning. Some of us have not forgotten the story of the Pied Piper.
Hillbilly D
August 19th, 2011
10:10 pm
Don’t forget Hawaii as an independent nation.
Rasslin’ is entertainment. I was entertained by “Star Wars”, too, but I never thought it was real.
Linda
August 19th, 2011
10:14 pm
Bloggers who post over 5000 comments about a picture of a mural while the “journalist” is on vacation prove that the “journalist” is expendable.
Mick
August 19th, 2011
10:15 pm
**but I never thought it was real.**
Neither did I but they are however, tremendous athletes in their own right…
Hillbilly D
August 19th, 2011
10:16 pm
Neither did I but they are however, tremendous athletes in their own right…
Yes, they are. For people who’ve never seen a match at ringside, you’d be amazed at the amount of contact they make.
Bruno
August 19th, 2011
10:20 pm
Jay’s bloggers believe that man-made global warming is real because Jay said so.
Apparently, you haven’t been reading enough of my posts, Linda. I had to straighten a few of them out today about that Science Fiction known as Big Bang/Evolution. For some reason, a few of them over there think they know a thing or two about Science.
Mick
August 19th, 2011
10:20 pm
hillbilly d
Well, it’s been nice to share and I hope that your folks are doing well, best of luck and good health cause we all know that’s the true wealth-
http://www.youtube.com/watch?v=OffZRdPUnLw
Michael H. Smith
August 19th, 2011
10:22 pm
Okay time to break it down Mr. Wingfield.
obumer never takes advise(non-marxist) especially good advise(non-marxist), he is a hardcore leftwing ideologue who cannot change.
obumer has so alienated the business community it is doubtful he could ever do anything to win them back to help him.
There are a number of people around that when the time is right, which will likely be when obumer and his pee-gressive democrats are out of power, can and will put this thing back on the economic track.
Like the Langones and Marcus’ who don’t just talk a big BS game like most of these idiot obumer liberal economist. They’ve done it and they know what it takes to actually create wealth and create jobs.
As Marcus said because of Sarbanes-Oxley they could not successfully build another Home Depot today.
Repealing this kind of junk and eliminating regulations that just don’t make good economic sense will have to take place before business people are going to stick their necks out and risk their fortunes.
On your house idea, it could have legs. The building industry, particularly in housing, is ripe for the long overdue changes from the traditional stick builds using old tech materials.
Bruno
August 19th, 2011
10:23 pm
In the first clinic I worked at, the office manager was the Mother-In-Law of Tank Abbot.
My wrestling hero wasn’t a wrestler, though. I present The Grand Wizard of Wrestling:
http://www.youtube.com/watch?v=vrt8LKlr-g0&feature=related
Bruno
August 19th, 2011
10:25 pm
Oops, make that King Kong Bundy. Tank Abbott was an early MMA star.
moonbat betty
August 19th, 2011
10:25 pm
Oye como va
http://www.youtube.com/watch?v=v13JAf6Oohc
AmVet
August 19th, 2011
10:26 pm
Hillbilly, for you and for you alone, I’ve come over here. (And I’m fairly drunk – for good reason) .
But you left me (us) and that is your business. I respect it (In a way) but I’m sad at how you did it.
You owe me nothing – including an explanation, but by way of explanation from me, my brother.
http://www.youtube.com/watch?v=77Q7j6s_OKg
getalife
August 19th, 2011
10:27 pm
“David Von Erich – Died February 10, 1984 in Tokyo at age 25, Japan of a drug overdose, although the press was fed a story about intestinal problems.
Mike Von Erich – Died April 12, 1987 after committing suicide at the age of 23 by overdosing on Placidly, a tranquilizer.
Chris Von Erich – Died September 12, 1991 at the age of 21 after committing suicide by shooting himself.
Kerry Von Erich – Died February 18, 1993 at the age of 33 after committing suicide by shooting himself. He has been arrested that day on cocaine possession, violating his probation on another drug charge.
Kevin Von Erich – Retired from the sport.”
I played football with these guys but would never climb in the ring with any of them.
Nobody in town would.
Josef
August 19th, 2011
10:27 pm
I wouldn’t lightly tangle wit a pro wrestler…not even when I was young and in shape!
Bruno
August 19th, 2011
10:28 pm
Just for Linda:
Chief Jay Strongbow vs. Toru Tanaka. Just wait for the wardance.
http://www.youtube.com/watch?v=RXZY1q5kSJk
Chief Jay was an authentic member of the Wop-a-ho tribe.
Linda
August 19th, 2011
10:31 pm
Hillbilly, If you want to continue to blog here, I would suggest you use a different name. I appreciate your contributions.
getalife
August 19th, 2011
10:32 pm
Linda,
What is your problem?
Hillbilly D
August 19th, 2011
10:34 pm
Linda
My name is what I am. My hillbilly roots run back about 3 centuries. I’m very proud of it. If Kyle doesn’t want me to post here, he can boot me.
Bruno
August 19th, 2011
10:34 pm
(And I’m fairly drunk – for good reason) .
Friggin corporatist, driving a Lexus.
Michael H. Smith
August 19th, 2011
10:38 pm
josef – Yeah, you probably could argue, to what end wouldn’t make any difference. From your view it would be mostly be emotional social issues not Constitutional ones, which quite readily can be settled in review of the Federalist Papers.
Numbers 41 and 45 sets the record very straight on federal and state powers. Federal powers are few and limited, State powers are many and very broad. You may not like what was just said about powers or rights but thems the facts sic as James “Little Jimmy” Madison made clear for all to read.
PS. Do understand a number of things really do need amending in the present Constitution to deal with uniformity issues that are problematic for the states.
Bruno
August 19th, 2011
10:39 pm
Back at ya, moonbat betty, with a nod to HD:
http://www.youtube.com/watch?v=VIusePfLhd0
AmVet
August 19th, 2011
10:39 pm
My lovely brother B, at the risk of being a nitpicker, it was a Q45. And a real beauty…
http://www.youtube.com/watch?v=mhxh31lmVmI
Linda
August 19th, 2011
10:41 pm
Bruno@10:20, I value my sanity & my time. Therefore, I don’t read comments over there.
Bruno
August 19th, 2011
10:45 pm
Alright, maybe I better have a drink to catch up with Brother Am. He’s definitely feeling it tonight.
Bruno@10:20, I value my sanity & my time. Therefore, I don’t read comments over there.
Understandable, Linda, but someone has to bring order to the chaos that is the JB Blog.
AmVet
August 19th, 2011
10:46 pm
For us…
http://www.youtube.com/watch?v=QOZ17BWje1Y
(All it did was change the world.)
getalife
August 19th, 2011
10:47 pm
Linda,
So you hang out at a echo chamber with no comments unless we show up.
Got it.
Bruno
August 19th, 2011
10:47 pm
Alright, time for my favorite King Crimson song:
http://www.youtube.com/watch?v=GlsAjke94Xc
Curious George went to Washington
August 19th, 2011
10:48 pm
hatorade drinkers
Your daddy should have left the load that created you on a crusty sock under the bed you dumb fu@K!
getalife
August 19th, 2011
10:49 pm
Sorry about the car AmVet.
I sold my old truck to a kid in the neighborhood.
His first car.
Totaled it in a month.
It was a great truck.
Curious George went to Washington
August 19th, 2011
10:51 pm
Barney Frank and Chris Dodd should have been aborted at birth.
AmVet
August 19th, 2011
10:52 pm
Thanks, getalife. you have always been a good bud. I wish somehow, someway we could get a chance to party together. It would be epic.
What do I have to do, Hillbilly? Kiss your mountain ___?
http://www.youtube.com/watch?v=gY76eJWKUDQ
getalife
August 19th, 2011
10:53 pm
Some lovely comments you have hear from curious george Linda.
Are you going to tell him your rules?
getalife
August 19th, 2011
10:56 pm
oops I broke a Linda rule.
hear should be here.
Bruno
August 19th, 2011
10:56 pm
Am @ 10:52– Now you’re talking my friend!! Dig A Pony!!
HD–You’ll have to give Brother Am a pass tonight. He wrecked his car and is drowning his sorrows.
Linda
August 19th, 2011
10:59 pm
Hillbilly@10:34, I guess I’m also a hillbilly & just as proud of my roots. You are welcome here. I just thought you might want to use another name to protect your privacy & rights to free speech.
Hillbilly D
August 19th, 2011
10:59 pm
What do I have to do, Hillbilly? Kiss your mountain ___?
You don’t have to do anything. As to why I left over there, some things are better left unsaid.
Nite to all.
http://www.youtube.com/watch?v=JX7NNMKBPsw
Bruno
August 19th, 2011
10:59 pm
Am–In the words of Bono: “That which we can’t let go, we must let go”.
http://www.youtube.com/watch?v=lWdG8NoFXY0
AmVet
August 19th, 2011
10:59 pm
HD can kiss my Kansas ___. (grin)
http://www.youtube.com/watch?v=wveGtAQk6Ko
Curious George went to Washington
August 19th, 2011
11:01 pm
Getalife self corrected… I’ll bet he was private schooled! Impressive, because if he was publicly educated his educators would be demanding more funds and pension increases to be able to correct his verbage malfunction…
AmVet
August 19th, 2011
11:01 pm
Thanks for the signoff, buddy. It means a lot to me. And of course, you’re right. As always…
Bruno
August 19th, 2011
11:02 pm
As to why I left over there, some things are better left unsaid.
HD–For what it’s worth, you’re a true man of faith in my book. Thanks for your great example for the rest of us.
Hillbilly D
August 19th, 2011
11:02 pm
Linda
No problem. I’m very guarded about my privacy. To the best of my knowledge, nobody here even knows exactly where I live, other than north GA. I like it that way.
Nite again.