| With the 2010 mid-term election campaign season | | | | the country from plunging into another Depression. |
| heating up it's a good time to look at where the | | | | The newly elected president realized that |
| two different major political parties stand on job | | | | government financial intervention needed to |
| creation. It's clear that the economy is the most | | | | continue for the banks and extended it to two of |
| important campaign issue and the most prominent | | | | the major American auto companies. Without |
| economic theme on most people's minds is job | | | | those bailouts, unemployment would have been |
| creation. To the extent that law makers can | | | | much higher. In 2009 President Obama, having |
| affect employment the parties have staked out | | | | inherited a $1.3 Trillion deficit, and the congressional |
| strategic positions, which they hope will help them | | | | Democrats involved the government further in |
| win in November. As someone who shares in the | | | | passing economic stimulus legislation. This seems |
| hope that everyone who wants a job can have | | | | to have maintained more jobs than it created, but |
| one here's my take on who offers the best hope. | | | | it can be said to have kept the unemployment |
| To start with, job creation is largely a private | | | | rate from getting worse than it did. |
| sector and business responsibility. Although | | | | As we all know, the economic recovery has been |
| government financed jobs are just as valuable | | | | slow and the high unemployment rate remains |
| and valid as private sector jobs the public sector | | | | largely stuck between 9.5 and 10%. In response, |
| cannot and should never expect to sustain the | | | | the political debate seems to be between the |
| economy largely through tax payer based | | | | Republicans saying that everything the president |
| employment. From that premise it becomes | | | | and Democrats attempt should be thwarted and |
| necessary to rate the parties on what they think | | | | the Democrats saying that increases in targeted |
| the role of government then should be in creating | | | | expenditures along with more regulation, |
| or facilitating the conditions by which the private | | | | particularly in the financial industry, is needed. So |
| sector can grow and create jobs. True to | | | | whose approach can result in more jobs? |
| tradition, the Democrats are looking for more | | | | This Recession began largely because of |
| interventionist and activist ways of involving | | | | unsustainable spending and speculation on behalf of |
| government to stimulate the private economy, | | | | many in the private sector who were able to get |
| while Republicans are trying to minimize | | | | away with it. Had there not been government |
| government involvement believing that business | | | | intervention we would be now experiencing the |
| and entrepreneurism alone can improve economic | | | | second Great Depression in our nation's history |
| conditions. Let's see how these approaches have | | | | with much higher unemployment than now. To |
| fared in recent political history. | | | | prevent a Depression government essentially |
| Essentially, Reaganomics has had its way for the | | | | transferred the unsustainable spending from the |
| past twenty-five to thirty years, by which I mean | | | | private sector to the tax payer in the form of an |
| the Republican penchant for reducing taxes on | | | | increased budget deficit. A robust business climate |
| wealthier Americans and reducing governmental | | | | is needed to seriously reduce that debt. |
| regulations on business have held sway. Even | | | | Republicans are still wedded to the belief that low |
| President Clinton talked about the era of big | | | | taxes to the rich and a low regulatory climate will |
| government being over. The best that can be | | | | create a long-term healthy economy. There really |
| said from a jobs perspective is that employment | | | | is nothing new in their game plan except to |
| followed the economic bubbles and busts of the | | | | cooperate even less than before with the |
| 1990s and 2000s resulting in the Recessionary | | | | Democrats. The track record of this approach |
| mess we now have. If the economic tide had | | | | from the last three decades is not encouraging, |
| lifted all boats, then the pulling of the economic | | | | however. The Democrats still believe that |
| plug in 2008 drained all of us and quickly. | | | | government should be a check and balance to the |
| Let's look at the last couple of years in particular. | | | | power of the markets so that excesses such as |
| The current Recession began in December 2007. | | | | those that have led to the current Recession and |
| By the fall of '08 with panic starting to set in we | | | | that have hurt so many Americans are mitigated. |
| had the Republican nominee for president telling us | | | | The power calibration between free markets and |
| the fundamentals of the economy were fine while | | | | government spending and intervention is tricky |
| the Democratic nominee was warning us of | | | | and far from a guarantee that it can right the |
| economic doom and gloom. President Bush's | | | | economic ship, but I prefer action over inaction. I |
| Treasury Secretary saw it imperative to begin a | | | | will take my chances with President Obama and |
| program of government funded bailouts to keep | | | | the Democrats. |