Big Business is NOT Creating Jobs; Corporate Tax Breaks are a Huge Waste of Money

Republicans keep telling us that only the private sector can create jobs. They claim, time and again, that reducing corporate tax rates and giving huge tax breaks to big corporations creates jobs. Maybe, once upon a time, there was a degree of truth to the idea. In today's economy it's pure bunk.

I'd like to share a recent example from here in North Carolina. Apple built a new, huge new data center here. How many jobs did that create? A whopping 50! That's right, there are only 50 new jobs there. Let me quote from an article on Yahoo! Finance, which is originally from Business Insider:

"Apple has chosen to manufacture its products where it can manufacture them most efficiently--outside the U.S. And Apple's shareholders are benefiting accordingly.

[...]

But the point is that the hope that a few more companies like Apple, Google, and Amazon will restore the U.S. economy to its former glory is misplaced.

The companies create amazing products and vast shareholder wealth, but they don't spread this wealth around as much as earlier industrial giants did."

Please note that I deliberately chose an article from a business publication, not a left-leaning political site. It seems even business reporters can see the truth now.

So, how can we create more jobs in this country? It's not all that hard: you hire people. It worked for FDR in the 1930s and it can work now. No, government hiring for public works projects didn't end the Great Depression, but it did reduce unemployment from nearly a third of the workforce down to 12%.

First, start by rehiring the teachers, firefighters and police officers who were let go because of state and local budget cutting and the end of stimulus funds. The "Teachers and First Responders Back to Work Act of 2011", originally part President Obama's jobs bill, would have done that. It was blocked in the Senate by every last Republican, one independent (Joseph Lieberman) and two conservative Democrats (Bill Pryor and Ben Nelson). Polling shows that an overwhelming majority of Americans do not support the cuts to education and to first responders. The cost of the bill would have been $35 billion.

Second, rebuild our crumbling infrastructure in this country. Even the pro-business, conservative Chamber of Commerce endorsed President Obama's call for more investment in our nation's infrastructure. Once again, public support is there for repairing and building roads, bridges, the power grid, and other needed projects. Once again, the Republicans blocked the bill in the Senate. The cost would have been $60 billion.

Bare in mind that Republicans opposed closing tax loopholes on the wealthiest Americans to pay for these bills. I still have yet to hear a rational explanation from Republicans telling me how tax the breaks they defend for luxury yachts, private jets and second homes is good for the economy or will create jobs. I do know that employed people, whether in the public or private sector, spend money which helps businesses profit, creates more jobs and, in turn creates more consumer spending. Employed people pay a heck of a lot more in taxes than unemployed people too, which reduces the deficit. Coming back to my original point: corporate welfare, whether it's subsidies for oil and energy companies or tax breaks to build a new data center, are a huge waste of money which does nothing for ordinary taxpayers but does enrich a small slice of the top 1%. Corporate welfare also increases the deficit by more than enough to pay for the two jobs bills I referenced.

The plain fact is that Republicans are deliberately tanking the economy and killing job creation because they believe that people will blame President Obama and elect more Republicans next year. They are all about their own power and their wealthy and big corporate donors and to hell with the rest of us. Maybe, just maybe the Occupy movement is finally waking people up to that reality. Maybe instead of the "throw the rascals out" mentality we saw in 2010 we might just get the "throw the 1% and their lackeys out" mentality we really need. Maybe, just maybe, people will pay attention and put the blame where it belongs this time.

It's all President Obama's Fault

Every day I see and read another right-wing opinion piece telling us how President Obama and an intrusive government are the cause of all our economic woes. Tea Party pundits and libertarian true believers seem to dominate the media, the Internet and the discussion despite their endless complaints about the "liberal bias" in anything that doesn't parrot their views. Living in a conservative state like North Carolina these views are now the real mainstream. My brother, who lives near Atlanta, made a comment that fits my feelings about my adopted home: "I used to be a conservative Republican until I moved to Georgia. Then I became a liberal Democrat... and my views didn't change." What was once conservative, or perhaps still is in New York where I cast my first ballot, is called liberal here.

Sorry, I don't see the government as more intrusive now than it was 30 years ago no matter how many right wingers say otherwise. We don't have a nanny state, though if social conservatives take power we might have government policing our bedrooms. We don't have too much government regulation. We have too little. Corporate greed rides rough shod over realistic planning for our future and for a sustainable economy rather than the quick buck. The right wingers who claim to be saving us all from an overbearing government that will tax us to death are ready to dismantle Social Security and Medicare, effectively handing granny a tin cup for her retirement, while refusing to cut one penny from corporate welfare (pardon me, subsidies) for big oil companies making record profits.

2011 resembles 1937. The Republicans were decimated in the 1932 election and we had one party rule for the next four years. With New Deal programs and the government building infrastructure FDR managed to cut unemployment from more than 25% in 1933 to 12% by 1936. That was still too high and people were suffering but the economy was in recovery. By 1937 the Supreme Court had thrown out some New Deal programs. A new Conservative Coalition in Congress called for fiscal restraint and deficit reduction. The economy went straight back into full blown depression and didn't recover until World War II.

Those who cannot learn from history are doomed to repeat it. --George Santayana

I believe in times of economic crisis, and that is where we are now, an activist government is a necessity. Yes, debts and deficits are a problem and they should be addressed. Start by ending what caused the deficits in the first place: unnecessary wars coupled with ill timed massive tax cuts that mainly benefit the wealthy. In wartime past Presidents have called on Americans to sacrifice. Neither President Bush nor President Obama has done so. Neither of them put this country on a wartime footing. The Bush tax cuts cost $4 trillion over 10 years, or roughly one third of our current deficit. Let the tax cuts expire next year, end the useless wars which we cannot possibly win and the deficit wouldn't look so daunting after all.

Make no mistake, President Bush and the policies of the right caused the current crisis. President Obama, through lack of leadership and a negotiating style that gives away the store before he even begins, has continued those policies and given as a Republican-light agenda that perpetuates the problems.

I am not a fan of President Obama. I'd gladly vote for someone else who would be an improvement. The current crop of Republican candidates is so extreme, so incredibly far to the right, that any of them would make things far, far worse. Unless President Obama faces a primary challenge or a strong independent with sane policies emerges I will have to hold my nose and while I vote to reelect him. Not exactly a ringing endorsement, is it?

Oh, and before the usual people simply write me off as some crazy liberal I will remind people that once upon a time I was a Reagan Republican. To paraphrase: I used to be a conservative Republican until I moved to North Carolina. Then I became a liberal Democrat. OK, my views on economics have moved to the left, but not by as much as you might think. As President Obama pointed out, President Reagan did take a balanced approach to deficit reduction. All too often President Obama's positions are far closer to those Ronald Reagan took than those of the Tea Party faithful who now effectively dominate the Republican Party.

Those who say it's all President Obama's fault want to take the policies that brought us to a crisis in the first place and put them on steroids. President Bush and a much more moderate Republican party gave us the Great Recession and record deficits. Those who ignore that bit of recent history don't want to repeat the mistakes of the past. They want to amplify them. Between TARP, bailouts, the stimulus package, new fiscal regulations and all the other policies they vilify we avoided a Second Great Depression. Yet on Fox News and on right wing and social media websites black is now white and white is now black. Those policies that saved our economy from going off a cliff are now the problem. Indeed, as the recent clamor on the right to not raise the debt ceiling amply demonstrated, they are more than happy to throw us all off that cliff.... and it will all be President Obama's fault.