So that was what we have been waiting for? That was
what all the hype was about? With a little over a year until the next election,
that was the “best shot” that Obama has for fixing the unemployment crisis in
this country? The Obama Jobs Plan (also now known as “the American Jobs Act”)
is going to cost $447 billion and it is going to do next to nothing to create
more jobs. Many Americans were hoping for something bold and new from Obama,
but instead what they got was a bad joke. When Obama stated that there is
“nothing radical in this bill”, he was not kidding. Instead of addressing the
fundamental issues that are causing job loss, Obama wants us to spend half a
trillion dollars on measures that will only create a very small number of jobs.
Sadly, much of what Obama is proposing actually consists of huge bribes to
middle class voters. Obama is trying to keep his own job, and he appears
willing to pile up even more debt in order to make that happen.
During his speech to the nation, Obama instructed Congress to either “pass
this jobs bill” or to “pass it right away” 16 different times. Obama obviously feels very strongly about
his jobs plan.
But will it work? Let’s take a few moments to break it down. The following
are 10 reasons why the Obama jobs plan is a bad joke….
#1 The payroll tax cuts are going to cost more than anything
else in the plan, but they will do very little to create jobs.
Just take a look at what is happening right now. Have the current payroll
tax cuts done much? No, the unemployment rate is still over 9 percent.
Yes, the new payroll tax cuts would be deeper and they would put some more
money into the pockets of American workers.
But if American workers go out and spend it on stuff made in China, how does
that create more jobs for American workers?
Businesses would certainly welcome the fact that their payroll taxes would be
cut, but it probably will not entice many of them to hire more people.
Because they know that the tax cut would only be temporary. After just a
handful of months the payroll tax would go right back to where it was
Businesses are not often moved by temporary tax cuts. If you want tax cuts
to really move business, then you need to make them permanent.
So does that mean that I am against these payroll tax cuts?
Absolutely not. I very much hope that payroll taxes get cut. I am all in
favor of the government taking as little money from me as possible.
Look, if the federal government is going to destroy our financial system
anyway, I would much rather keep as much of my own money in my own pockets as
So yes, I am all in favor of payroll tax cuts.
But no, those cuts are not going to do much to create jobs. If payroll tax
cuts were going to create a lot more jobs we would already see it happening.
However, if this is passed it will be a great bribe to voters because
millions of Americans will see their paychecks go up and when that happens they
will think of Obama.
#2 Obama’s plan to extend unemployment assistance is going
to cost about $49 billion but it is not going to do much to create any jobs.
Back in 2009, Congress first authorized an extension of unemployment benefits
to a maximum of 99 weeks. Five times since then Congress has reauthorized this
So has this made a huge difference in the number of unemployed?
Of course not. If it was going to make a huge difference it would have done
Yes, these extended benefits are easing the suffering of those that are out
of work, and yes they are giving them a little extra money to spend, but let’s
not pretend that extending unemployment benefits is going to create a whole
bunch of new jobs.
#3 Obama is proposing $50 billion in “immediate”
infrastructure spending and $10 billion for a new infrastructure bank that will
be dedicated to raising private capital to finance infrastructure projects
around the country.
Hopefully this will work out a whole lot better than the “shovel ready” jobs
that Obama promised previously.
Yes, infrastructure all over this country is rapidly falling
apart. Yes, it is a legitimate function of government to invest in public
But no, this is not going to create a ton of new jobs. It will create a few
jobs, but it will also add to our rapidly growing national debt.
#4 According to the fact sheet on the jobs plan released by the Obama
administration, direct financial aid to state governments will prevent up to
280,000 teacher layoffs, and it will also help states retain more police and
Essentially, this is a “backdoor bailout” for the states. Yes, it will be a
good thing if teachers, police and firefighters are able to keep their jobs.
However, preventing job losses is not the same as creating new jobs. So this
may help reduce the bleeding a little bit, but it is not going to turn the
overall employment situation around.
#5 There are a bunch of other minor things in Obama’s
proposal such as “modernizing” public schools and helping more Americans
refinance their mortgages, but it is not entirely clear how those things will
help create a lot more jobs.
Meanwhile, there are a whole lot of things that the Obama jobs plan does not
#6 The Obama jobs plan does next to nothing to prevent jobs
from being shipped out of the country.
I wrote about the other day, right now the way the system is designed makes
it highly profitable to send American jobs overseas….
*It is legal to pay slave labor wages in many of these other countries.
After all, why pay an American worker 10 or 20 times as much as a worker on the
other side of the globe?
*In many of these other countries you do not have to provide any health
care for workers.
*In many of these other countries there are virtually no environmental
controls to worry about.
*In many of these other countries there are virtually no labor standards
to worry about.
*In many of these other countries you only have to deal with a fraction
of the “red tape” that you have to deal with in the United
Obama is doing absolutely nothing to address these imbalances.
#7 The Obama jobs plan does nothing about the unfair trade
practices that are absolutely killing America on the global economic stage.
I wrote about the other day, other nations are manipulating currency rates,
they are openly stealing technology from our companies, they allow their workers
to be paid slave labor wages and they put up huge barriers to goods and services
from the United States and we let them get away with it. Our
trade policies are absolutely insane, and the way that the new “global
economy” is structured guarantees that U.S. businesses are going to be
operating at a huge disadvantage. The following are just a few more of the
reasons why foreign firms have a huge advantage over U.S. companies….
*Many foreign nations deeply and directly subsidize national industries
and the U.S. government lets them get away with it. That puts our industries at
a vast disadvantage.
*The United States has the highest corporate tax rate in the world. That
puts our corporations at a vast disadvantage.
*Many foreign nations do not require businesses to provide health care
for their employees. That puts our businesses at a vast disadvantage.
*Many foreign nations impose very little regulation on businesses. That
puts businesses in the United States at a vast disadvantage. In the U.S., we
have some of the most restrictive regulations in the
In 2011 we are going to end up with a trade deficit that is probably going to
be well in excess of half a trillion dollars. According to one estimate, if the
trade deficit was totally eliminated it would create 8.4 million new jobs inside the United States.
So why isn’t Barack Obama proposing to do something about all of this?
#8 The Obama jobs plan does nothing about the gigantic
mountains of ridiculous regulations that are absolutely killing small business in this country. According to the
Heritage Foundation, 75 new
major regulations that have cost U.S. businesses more than 40 billion
dollars have been passed since Barack Obama first took office.
The Federal Register (which contains all federal regulations) just keeps
exploding in size. Last year alone, 81,405 new pages were published in the Federal Register.
Right now there is a good chance that you are breaking dozens of federal
regulations without even knowing it.
All of this regulation is crushing our businesses and is making us much less
competitive in the global marketplace.
Yes, there will always be a need for common sense regulations on business
activity. But what we have right now is an absolute madhouse.
#9 The Obama jobs plan does nothing about the negative
effects of Obamacare. Obamacare is going to absolutely slaughter U.S.
businesses. Look, when most other nations do not burden their businesses with
providing health care and we force our businesses to comply with the nightmare
that Obamacare represents, who do you think has the advantage?
The other day, I noted some of the effects that Obamacare is
already having on the U.S. business community….
According to a recent report from the National Federation of Independent
Business, one out of every eight small businesses in the United States
have either already had or expect to have the health insurance plans for their
employees terminated by the health insurance companies because of Obamacare. Another recent survey of mid-size and large businesses found
that nearly ten percent of them plan to stop offering health insurance coverage
to workers once Obamacare insurance exchanges begin in 2014, and another 20
percent are not sure if they will continue to offer coverage or not. Our health
care system is deeply broken and the ones that keep getting the short end
of the stick are average Americans.
If Obama was serious about putting Americans back to work, he would do
something about Obamacare.
But he is not going to do that, is he?
#10 The Obama jobs plan makes our national
debt worse. Yes, Obama insists that his plan will be “100%” paid for, but
he has not told us how it will be paid for.
Exactly where in the world is he going to get an extra half a trillion
dollars next year?
Obama probably intends to propose some tax increases that he knows that the
Republicans would never, ever agree to.
So, no, Obama’s proposals will not be paid for.
The U.S. national debt has increased by more than 4 trillion dollars since Barack Obama took
office. It is currently increasing by more than 2 million dollars per
We cannot afford to pile huge amounts of additional debt on to the backs of
our children and our grandchildren. What we have already done to them is
deeply, deeply criminal.
In the end, some of Obama’s proposals will probably get passed, none of them
will be paid for, our debt will get even bigger, and the fundamental reasons for
our job losses will remain unaddressed.
So hopefully you can understand why I consider the Obama jobs plan to be a
really bad joke.
Tonight, millions of Americans will be sleeping in seedy motels, in their
cars or in tent cities.
Just check out these pictures from New Jersey. Can you believe that some
hard working Americans actually have to live like that?
We had the greatest economy that the world has ever seen.
Things did not have to turn out this way.
But they did.
Now Obama has come up with a “plan” that will not fix any of our fundamental
problems but that will get us into a whole lot more debt.
Please excuse me if I am less than thrilled.