Wednesday, December 2, 2009

Jobs Summit, Bah Humbug

Thursday is the big White House jobs summit, yawn. Everybody will be there except the people with the answers. Business wants their taxes cut, they especially want to quit paying into social security and cut the minimum wage so they can hire more slaves (I mean workers). Not that they would, they'll just pay the ones they have less. They wouldn’t mind a hand out from the government directly or at least cut the capital gains tax, 15% is too much they say, when they sell their factory to China they want it to be completely tax free. Unions will be there but you’d need someone who can talk to ghosts to hear anything they have to say.

This summit will be largely kabuki theater because the only thing that would bring back jobs is a complete reversal of every thing that has been done by the government since 1980. But Obama’s advisors that were recycled from the Clinton Adm. believe in doing everything with monetary policy. The big advantage is that almost nobody realizes what they are doing. They may be able to produce a large prosperity bubble like Clinton did although it will be much more obvious how hollow it is. Indeed job losses are starting to ease but the boom and bust cycles come faster every time this is done.

They seem to think all they have to do is convince people that everything will be all right. We aren’t in free fall in US retail sector right now largely from pent-up demand. Electronic sales are up as the people who still have money are making replacement equipment purchases that they had been putting off. But sales of everything else are flat at best and most sectors are way down despite a massive campaign by retailers to lure shoppers.

The Federal Reserve is running PSAs on the responsible use of credit cards, as if people still had any credit line to spend. State and local governments are forcing unions to take pay cuts to maintain full employment. The Republican talking point is that unions will expect something in return and that jobs should have been cut instead. Fire them on Christmas Eve if at all possible, bah humbug.


Phil said...

Completely agree! Obama will fail because he is not looking at the cause to find the truth.