Every presidential candidate, as well as the current President of the United States, has a plan to create new jobs. However, can the President really create new jobs? The simple answer is, “no.” Based on the U.S. Constitution, it takes the efforts of the Senate and House of Representatives to make changes. The President can propose job-creating plans, negotiate with Congress, and gain support of the citizens to move his or her plan forward. But, the President alone cannot create jobs.
In any economy, a company’s number one goal is to make money; innovating, producing, and delivering products or services that people will buy do this. When demand for the product or service is high, companies hire more employees. When demand is declining, companies reduce their workforce. So, what can the President do to increase that demand? Can a leader from any political party create jobs?
If you follow John Maynard Keynes’s theory, you may believe that government can create jobs by spending money, similar to the stimulus plan of 2009. To make an impact, the spending would need to be $1.5 to $2 trillion (yes with a T!). The overwhelming government debt would be another issue entirely. Then we hear the flipside: If government reduces taxes and regulations, companies would be empowered to innovate and produce products/services that lead to growth and jobs. With the reduction in taxes and regulations, there is also a reduction in the size of government (less government jobs). Our government employs more than 2 million civilian workers. Of course, there is no large job recovery, if our leaders take the middle ground.
Those are the big picture philosophies. Then we dig into actual job plans. Some recommend expanding trade and global commerce by expanding free trade agreements with South Korea, Columbia, etc. Then we read the strong arguments of how free trade (especially with countries like China) represents a huge trade deficit – and a major cut into US jobs. Take a look at energy. Opening up drilling in the U.S. is a popular mantra and some say that would produce more than 750,000 jobs. And, the opposing position believes green regulations are the answer to bring on the next great wave of U.S. innovation. One idea that appears to be less controversial than others is to increase the promotion of U.S. tourism. The U.S. Chamber of Commerce thinks this may produce 1.3 million jobs by 2020.
This article is a very basic look at how the President can impact jobs, as well as how our government as a whole can create jobs. We just want to get you thinking. What should each of us do? Follow the race to the White House. Be an educated voter. Take care of your personal economic situation. In a down economy, dedicate yourself to learning new skills, continuously network, and perhaps broaden your scope when considering employment opportunities.
I want to hear from you. How do you think the President and Congress can create jobs? What should they do to create jobs?