Tuesday, September 6, 2011

It's about jobs, stupid!

In a couple of days our Liar-in-Chief will stand before a joint Congress and deliver his much anticipated speech about job creation.

I am not entirely sure but I think this will make 11 speeches about jobs and his plan for job creation in the past year or so.

My guess is that this one is so anticipated because it will include all manner of different thinking….after all, as Carney said yesterday….”there are some things the President can do WITHOUT Congress (and he will)…and other things he will need Congressional action on, hence he must give this speech before Congress”

On a side note, can someone tell me, please, where does Obama find these incompetent fools to appoint as his Press Secretary? The role of Press Secretary is vital as it portrays the President’s opinions and thoughts to the press. I would have thought one would want someone who was at least of moderate intelligence, and able to string more than two words together to make a logical sentence. Clearly, this is not a requirement for the job…or maybe Obama wanted someone who closely resembled his own level of intellect….who can match him with use of meaningful diatribes interspersed with …errrr’s and ummmm’s and aaaaahs….

Anyway….Carney is setting the expectations of a momentous speech…and I am sure Obama will deliver…

I am sure we are going to hear bold new plans….
….increased spending on infrastructure projects (you know, those shovel ready ones)
….patent law revisions
….green jobs
….legislation to ensure employers add workers
….payroll tax reduction extensions
….incentives to get employers to create jobs

….oh and of course…

….reductions in spending starting in 2016 to pay for the big spending over …oh, about two decades
…taxes on the rich starting now

Yep, all stuff we have never heard before, right?

He may really surprise us and come up with something different, but I doubt that it will be anything more than a variation of the same theme we have seen forever. You see, this incompetent fool is unable to think outside of the box he was educated in (and man that looks like a very small box!).

His ideology does not allow him to understand even the most basic fundamentals of economics, and therefore he has no idea how jobs are created. He believe government is the driver of job creation.

Well, Obama, here is a simple little economics lesson for you….pay attention, now, you are really going to have to concentrate to understand this:-

1. Government has absolutely NO, ZERO, ZILCH… ability to create private sector jobs. Government policy MAY, in conjunction with economic reality, change WHEN an employer hires a new employee, but it does not, and never has, CREATED a single private sector job!

2. Private industry ALWAYS creates jobs when unburdened by government legislation and regulation. Individual companies or even industries may not survive, but private industry ALWAYS creates NET job increases over time when the government does not get involved.

Why is the case?

Because job creation is based on a couple of simple economic realities:-

1. capital flows to the most efficient businesses. I am sure you have heard the old adage that cash doesn’t lie? Well, that is true. In a true fair market environment, cash will flow toward the most efficient, most profitable and most interesting businesses. It will flow away from those businesses that are not well run, not in strong markets and not profitable.

What does this mean? It means that companies and industries that in markets that have disappeared or are in danger of disappearing, will not survive. They will go the way of the dinosaur. The people working in these industries will become unemployed.

But that is simply the start of the process.

These companies will NOT then be using up resources that would now flow to the efficient companies in strong markets. Those companies will better use that capital to grow markets, and employ more people.

This is how the world works. Markets grow, mature, decline and die. When government chooses which markets should be supported (eg. green companies) and which should be punished (eg. coal sourced electricity) it changes the natural movement of capital. It wastes capital on companies and industries that would never exist if it were not for government intrusion, and prevents capital from flowing to the companies it feels should not exist.

Capital is like water. It flows downhill, until a dam is built to prevent the natural flow. Government is that dam. Government prevents the natural flow. Government prevents the natural flow of capital and hence interrupts the normal product life cycles. The end result is unemployment because the new industry that government supports is insufficiently mature to absorb the massive unemployment caused by castrating strong industries that simply do not meet government’s ideological ideas.

2. Companies and industries grow because they produce what the consumers want. Growth comes from increased demand from the consumer who believes the product has sufficient value that they are prepared to pay real money for it. Competition for those dollars the consumer holds brings product improvement and reduced prices thus continuing to stimulate demand.

Government is unable to legislate that demand. Government is unable to regulate that demand.

Try as they might, government is not able to convince a big truck driving Texan to swap his F350 (with a range of 500 miles) for a Chevy Volt (with a range of 40 miles). This is not going to happen…yet the government has decided that the Volt is the right solution…and that big vehicles should be penalized.

Meddling in the natural flow of demand reduces product innovation, increases costs, induces inefficiencies and makes the company less appealing to the natural flow of capital.

When a company becomes starved of capital…foe either of the reasons above, companies and industries will be put fairly on the fast track to oblivion. If we take this to its logical end, we will eventually be left with inefficient industries producing products we don’t want and don’t need…all paid for by the money taken from you in the form of taxes, taken from you in the form of inflation, or taken from you in the form of currency devaluation.

If you want to live in a world that allows you choice of products to purchase, that continually reinvents itself through innovation and technology advancement, a world that rewards success and punishes failure….then you MUST not allow Washinton to continue trying to create jobs.

Government creation of jobs is the fastest way to economic failure possible.

Now, I shudder when I hear Mitt Romney say he “knows how to create jobs”…and that is a reason he should be President. I shudder because as President he cannot create a single private sector job.

What does he really mean?

If he means that he get government to help small and large businesses succeed, be wary because that is exactly what has destroyed the economy now. We do not need or want that kind of help.
On the hand, if he is really talking about getting the government out of the way bu reducing regulation and legislation, by stopping the spending, stopping the borrowing and reducing taxes, then he has simply misspoken. These actions do not create jobs….they simply create an environment where capital can again start flowing downhill.

Is Romney on the right track? I very much doubt it.

Where is the candidate who can simply and succinctly demonstrate his or her knowledge of the flow of capital and the impact of the government dam?

I don’t know…but I hope to hear from him or her soon!!

Now, a quick word to those who are suffering at the hands of government action. If you are one of the many unemployed, you are not helpless or hopeless.

Here are a few hints that will help you:-

1. Stop writing to strangers and asking them to give you a job. This does not work in an environment where jobs are tight. An alternative is to not look for a job but to look for information. Stop asking for work and start asking people what they look for in an employee, what they like about their own jobs, what advice they would give to a job seeker. Do not go looking for a job, go asking for advice.

2. Give away your skills free of charge. Offer to help somebody with a problem they may have. Offer to do whatever you see as a need. As an example…if you see a store parking lot covered in papers and empty fast food containers, offer to sweep it for no charge. The reason for this? It shows that you care….it shows that you are willing to do whatever is needed…it shows that you are real. If you have specific skills that you thnk can be used, offer them at no charge. This may get you in the door and from there who knows what can happen.

3. Be persistent. Sweep that car park every day….without fail and without being asked. Knock on that door every morning asking if you can do something to help…just because you care. Wear out your knuckles with knocking on doors….carry a resume with you at all times, but only give it if you are asked for it. Remember….you are looking for ways to help or to gather information…you are NOT asking a stranger for a job!

4. Ask friends to introduce you to people who know something about your line of work. Do not ask to be introduced to someone who can give you a job. That is the same as asking a stranger for work. In the current climate you not only have to stand out from the others wanting work, you have to SHOW that you are what the employer needs.

Why will these things work? Because I can guarantee that very few people in your town are doing it. They are all sitting at home, plowing through the classifieds and writing letters to strangers, asking for a job.

You, on the other hand, are out on the streets, making connections, meeting people, proving who you are and what you are willing to do. You are seeking advice, and opportunity. When someone is ready to put on a new employee…you will be remembered…not some faceless letter asking a stranger for a job.

What do you have to lose?

I can tell you that I have used this process…and it works.

And…as a bonus, you will feel better about yourself than you will just watching reruns of Days of our Lives on TV. Get your ass out into the world and find out what is really going on. You may be surprised by how quickly that next job will find you!

Give it a try!


No comments:

Post a Comment