We Need a Jobs Package, Not a Stimulus Package

This seems like Framing and Political Strategy 101 to me, but since few other people are talking in this way, let me just lay out a basic idea: all this talk about doing a stimulus package versus not doing a stimulus package is fundamentally besides the point. What we need is a comprehensive policy package that is very simply focused on one thing and one thing only: jobs.

I know the policy wonks on Capitol Hill may be confused by that paragraph because, they would say, well, a stimulus program would create jobs. Well, yeah, that is the idea of stimulus. But my point is this: the politics of a second stimulus package are a dead end. The politics of having a debate about a policy package that will create jobs is a helpful thing. Announcing a second stimulus package gets Democrats into a defensive crouch about why the first one failed, and gets us into that same "can we get to 60" dance with Ben Nelson, Arlen Specter, Olympia Snowe, and Susan Collins that caused the first stimulus bill to be pared back and rendered less effective.

Voters don't know what it means to say you are going to stimulate the economy, but they do know what a job is. And right now, what we need is jobs sooner rather than later. My point here is not to just rename the stimulus bill the jobs bill. In fact, there are quite a few things the White House and Congress can do to focus on jobs that don't involve just spending more, although more money will certainly need to be spent. Here is what I would include in a comprehensive package:

1. Take on, far more aggressively than now, the currency manipulation going on in China. Our balance of trade problem and big losses in our manufacturing sector will not be solved without aggressively dealing with the country that we have by far and away our biggest trade deficit with, and China's policy of currency manipulation is a huge part of the problem.

2. A serious industrial policy that helps emerging industries grow. Every other industrialized country in the world has an industrial policy that helps emerging industries quickly grow and create new jobs. Yes, it does mean picking winners and losers, but we need to get over our reticence about doing that so that we can help the industries with the most potential for producing big numbers of good jobs.

3. Force every big bank that was propped up during the financial collapse -- which is pretty much all of them when you include the Federal Reserve dollars sloshing around the system -- to actually make loans to businesses so that they can create jobs. This "money for nothing and your kicks for free" philosophy has to end. The big banks need to understand very clearly that we expect something more from them, after all they have been given, than merging with other banks and giving record bonuses to their executives.

4. Direct the Justice Department to actually use existing antitrust law (and then beef it up where necessary) to break up the big banks and other mega-corporations stifling small business and competition. Promoting real competition in these industries will produce real jobs.

5. Fundamentally restructure the corporate tax system to incentivize American job creation and dis-incentivize the outsourcing of jobs.

6. Consistent with what every other industrialized country in the world, and consistent with existing WTO rules, have our federal purchases (20% plus of the economy right now) buy from companies producing goods in America. Big business and media elites will scream protectionism, but it would just be doing what every other economic power does.

7. And yes, spend some more money -- on infrastructure, on green jobs, on state revenue sharing. On all those things that were foolishly cut in the last stimulus package by the Nelson/Specter/Collins/Snowe cabal. But this time, just add the money into the federal budget so the job-killing Senators can't screw things up with a filibuster.

I've said it before and will likely say it again: this economy will not recover, and Barack Obama will not have a successful presidency, without a laser beam focus on creating good jobs. Resuscitating the big banks, whether you believe that needed to be done or not, did not create any new jobs (although it did save a few bank executives' jobs, and I'm sure their record bonuses will someday trickle down to the rest of us. Or maybe not). What we need is not another short-term stimulus package, what we need is a real plan, a comprehensive plan, to create good jobs ASAP over the short and long term.

Comments

[kstuff]

Yes, jobs are key.

In Michigan, the unemployment offices are overwhelmed. Once laid-off, you are given a telephone appointment two weeks in the future. This is merely to discuss the possibility of receiving an unemployment check. It's like registering for classes in college with the CRISP lady (for you Michigan Grads).

Here's an idea...HIR­E MORE PEOPLE TO WORK IN THE UNEMPLOYMENT OFFICES. This is not rocket science, people. It would require federal assistance to fund, but at least it would be practical.

[ThePeoplesKey]

My wife works at the unemployment agency in Michigan. She is and has been on mandatory overtime for approximately the last 2 years. That means she leaves home for work at 7:15 AM and arrives home from work at 7:15 PM . . . Daily.

In addition, she works at least 2-3 Saturday's per month from 7:00 AM to 3:30 PM. IOW, they're working they're rear ends off.

It hasn't been fun. Based on her at work war stories, the problem (as usual) is over educated breaurcrats who think they know something because they attended college. Frankly from what I've learned about their management skills, I wouldn't let them organize and/or manage a yard sale.

Of course, we pay them nearly six figures for their lack of skill because they have a piece of paper certifying that they know what they don't know.

Makes perfect sense doesn't it?

[robbep]

your idea is practical and makes to much sense so therefore we reject it.

[ThePeoplesKey]

LOL!

[hoosier96]

And what would be your suggestion on the impending increase in the minimum wage. Talk about a job killer.

[ChristianEcon.com]

If you can't pay minimum wage, you don't have a sound business idea or plan. Your business should be weeded out by the market, because people neither need nor want your product or business.

[therealredstateblues]

History has shown that increases in minimum wage have had zero effect on killing jobs

it has meant pennies at the check out

getting more money in the hands of those most likely to spend it HELPS the economy

[justthefacts17]

Quick,get on a plane to DC. You think just like the admin.

[americaforme]

To get new jobs I guess we need to elect a new congress, this one doesn't work. They kill everything that (we the people) need to have. Jobs should be on their plates, and if they dont happen, they should be fired. We are way past the time to tolerate excuses, get going on the jobs or hit the street yourselves.

[Jon Spurgfin]

"Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other." mises.orgg

I liken the government creating jobs to ethanol creating energy. Sure you have energy to show for it, unforunately it took more energy to produce it.

[aofh]

I suppose you've never heard of the WPA. I suppose, too, that there isn't a military installation in your town or public schools. Also, you should talk to those Congressmen who want to add additional F-22s and C-130 to the Defense budget that the military doesn't want. If you think government spending is like creating ethanol, you should talk to city fathers who have had military installations close to see how well their cities have coped in the aftermath.

[CrzyRussell]

The stimulus has nothing to do with the WPA. The only jobs effected by the stimulus already exist and are highly skilled jobs that people off the street don't qualify for.

The WPA provided jobs for those who were able to work.

[ChristianEcon.com]

That would only apply to non-productive labor. We're not talking about hiring people to dig and fill a hole over and over.