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12 Myths about America's Jobs Crisis

Posted: 02/ 6/2012 9:21 am

When Americans head for the polls this fall, a lot of people will be voting on just one issue: jobs. But so far, much of the political rhetoric sounds like it could be coming from one job that's pretty much obsolete - a carnival barker. It's awash with sweeping generalizations and vast oversimplification.

There's almost no talk of the enormously difficult, long-term challenges we face on jobs. "Elect (or re-elect) me, and everything will be fine," the candidates seem to say. The reality is that the Great Recession destroyed 8.4 million jobs, and technology and a competitive global economy have changed the rules on what it takes to create and keep good ones here in the United States.

In our book--Where Did the Jobs Go--and How Do We Get Them Back? (William Morrow, $16.99)--we examine some of the myths and oversimplifications voters need to watch for. Political campaigns tend to gloss over the details. We'll see the candidates in their jeans or khakis standing in front of factories shaking workers' hands. We'll hear them praise American workers and entrepreneurship. They'll express their concerns about people who've lost jobs or whose businesses have failed. But that doesn't mean they have solid ideas for addressing the problem.

We need to grasp the depth of the challenge and be open to a whole range of old and new ideas for creating jobs. And we need leaders who will be straight with us. We're deep in the hole already and fighting powerful global trends. We're not going to rev up our economy's job creation capacity in just a few years. Anyone who says otherwise is selling something - usually themselves.

So when you hear candidates say things like this, it's time to ask some tough questions.


Myth No. 1: Cutting taxes is a surefire way to create jobs
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Most Americans are deeply unhappy with our tax system, and it is true that job creation can stall when taxes are too high. But after the Bush tax cuts in 2001 and 2003, U.S. federal income taxes are already at historically low levels.

Yet between 2000 and 2010, our economy lost about as many jobs as we created. Taxes matter, and tax reform and specific kinds of tax cuts might well be helpful, but just cutting taxes, in and of itself, is not a foolproof recipe for job creation.
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When Americans head for the polls this fall, a lot of people will be voting on just one issue: jobs. But so far, much of the political rhetoric sounds like it could be coming from one job that's pret...
When Americans head for the polls this fall, a lot of people will be voting on just one issue: jobs. But so far, much of the political rhetoric sounds like it could be coming from one job that's pret...
 
 
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HUFFPOST COMMUNITY MODERATOR
Gronkie
Radical Independent
10:42 AM on 02/13/2012
#11 is the key - Creating new companies. The best way to keep your job from being off-shored, outsourced or eliminated for any reason is to hire yourself. A major part of any business education should be learning the skills associated with entrepreneurship. Being an entrepreneur is just a job with specific skills like any other job, and those skills can be learned and honed. Rather than climb the ladder, I just decided to own the ladder and hire others to climb it for me, and nobody can fire me but myself. It isn't an easy path, but it it's never boring.

I first decided to become self-employed when I was working may tail off for a major company, performing far beyond expectations, selling far beyond my quota, and earning excellent commissions, only to find myself laid-off when some bean counter in the home office made the brilliant decision that money could be saved by getting rid of the guy in the Midwest that was being paid more than anyone else in his position. I decided that if I would work that hard, and make so much money for for someone who cared so little for me, why wouldn't I work that hard for myself? So I started my own company with only a legal pad, pencil, a phone and my own proven sales ability, and I have been self-employed ever since. I don't even have a resume - who would I give it to?
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sherlockhemlock
Rocky Anderson for President 2012!
04:38 AM on 02/07/2012
It isn't about jobs. It never was. It's about wages, and THAT crisis has been steadily worsening for more than three decades now.
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HUFFPOST COMMUNITY MODERATOR
Gronkie
Radical Independent
10:51 AM on 02/13/2012
Wrong. Every business owner knows that it is about PROFITS, and wages, suppliers, sales, shipping, job efficiency and much more contribute to profits. Bad business owners, or corporations with a decentralized decision-making process, often focus on specific pet issues (like wages) and forget about the contribution to profit that other factors make, or the way that factors can combine to contribute beyond the sum of their parts (the multiplier effect). Then there are those that have to view everything as quantitative rather than qualitative. The worst are the business owners or operators that believe the drivel that is spewed by agenda-driven radio talk show hosts, and make their business decisions based on propaganda rather than the facts that are in front of their face every day.
07:17 PM on 02/06/2012
we probably shouldn't go into even more debt though...a lot of these "myths" seem to encourage spending by the federal government, which would then put us into more debt as a country, which will cause us to do more outsourcing and such so the government won't have to pay as much.

lesser, wiser spending is the only alternative
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HUFFPOST SUPER USER
robjh1
That Job Just Isn't Into You!
03:24 PM on 02/06/2012
If these myths about job creation is true, why is it the media won't dispel the politician myth ever time it comes up? Just keep them honest!