Earlier this week, President Obama announced that he would hold a televised meeting that would include himself and leaders of both Congressional Chambers on February 25th. According to Obama, the purpose of the meeting is to hear ideas from all parties, forge them in a bipartisan bill and get health care reform passed.
Coincidental with the announcement of his desire to hear Republican input on health care, Obama has increased the volume and frequency of accusing Republicans of being the “party of no.” Last Wednesday, President Obama called Republicans “obstructionists” during a meeting with Democrat lawmakers. On Monday of this week, President Obama characterized the Republican desire to start the health care process over again as “doing nothing.” With this kind of rhetoric, some, including myself, wonder whether President Obama is sincere in is attempt to hear ideas or whether the health care meeting is a first step in an attempt to color the Republicans as the “party of no” in an attempt to save the sure November disaster waiting for the Democrats.
Today, President Obama had a closed door meeting with Nancy Pelosi and John Boehner. The meeting was set to discuss what was to be included in and how to pass a “jobs bill.” Reportedly, on the topic of credits for jobs created, Nancy Pelosi expressed skepticism of the bill and said that she knew of no one who believed the plan would actually create any jobs!
Hallelujah! I’m not sure that I’ve ever agreed with Nancy Pelosi before! Further, I think this may be the first time this session that Pelosi and Boehner agree, although they may not realize it!
Boenher has diagnosed the problem properly. Jobs are not returning because businesses have too many uncertainties. Health care costs, energy costs, capital gains, income taxes and many other items are currently being considered by the Obama administration. In each case, the administration is proposing legislation that would either cost businesses more or put further regulation on their ability to do business. When businesses see uncertainty that they have no ability to hedge against, they respond by taking less risk. Taking less risk translates to less hiring and fewer jobs.
Pelosi is also right, even though she doesn’t know why. Given the uncertainty described previously, jobs credits will have little to no effect on hiring. The issue, simply, is that employers are not hiring because they see high risk in expanding their business. Increasing hiring, even if it’s partially paid for by the government, does nothing to change the broader economic issues.
Who would have guessed that when it came to assessing a jobs program, Nancy Pelosi and John Boehner would be on the same side of the argument, neither party wants to pursue one.
So, who’s the “party of no” now?
\”Boenher has diagnosed the problem properly. Jobs are not returning because businesses have too many uncertainties. Health care costs, energy costs, capital gains, income taxes and many other items are currently being considered by the Obama administration.\”
Jobs are not returning because businesses don\’t have any customers. We have a DEMAND problem which trumps every other uncertainty on your list. This is what happens following the collapse of a debt bubble the size of the one we just lived through. Everytime.