President Obama's announcement Thursday of a December jobs summit aimed at synching job growth with massive government spending has provoked cynicism among critics who believe the president is more interested in burnishing his reputation than tackling rising unemployment.
"I think the purpose of the summit is basically just public relations, is to try and convince people that the administration is doing a good job," Harvard economist Jeff Miron said.
Obama's announcement came with unemployment at a 26-year high of 10.2 percent despite the president's repeated touting of all the administration's efforts to create jobs.
The president realizes that the job outlook may be his biggest achilles heal come November of next year. The stimulus has done nothing to create jobs, and the Democrats have spent the rest of the legislation session on health care reform.
So, if unemployment rates stay near where they are now, the ones that will really be in pain next November will be the Democratic politicians facing re election. There's really only a few ways for governments to create an environment for job creation. I say to create an environment because, despite what some politicians will tell you, government can't create jobs. They can only create an enviroment for job creation.
The first is tax cuts especially to job creators: capital gains tax cuts, the top marginal rate, and corporate tax rate cuts. The second is expansive monetary policy. The third is regulatory reform. That of course means less regulation. That's it. He needs no jobs summit. This is really not all that difficult to understand.
Government spending doesn't create an environment for job creation. A massive health care bill doesn't create an environment for job creation, and neither does an energy tax. The president needs no jobs summit but rather a total and complete policy adjustment.