job creation

Pelosi's Pronouncements In The Age Of Obama

The video below comes from a friend of mine and it's not bad. The focus is on President Obama, but there are slivers of other guest appearances. Note House Speaker Nancy Pelosi's cameo. She says health care "reform" is the best way to provide jobs. But a quick check of her pronouncements shows that we should have near full employment by now, not the chronically high 9.6 percent unemployment that stagnant Euro-statist-welfare-states tolerate. For example:

» She said over the summer that extending unemployment benefits is the best method for immediate job creation (see American Thinker).

» She told the country in May that guaranteeing health care allows people to quit their jobs to pursue the arts because artists typically can't afford insurance.

» Way back when she said the best way to create jobs was to pass the "stimulus."

Meanwhile, we're spending into oblivion in a debt-and-spend cycle of cataclysmic proportions, worthy of a third world country, with results that aren't much better. The video sums it up well:

Fiddling while America burns.

Alarming Gallup Study: Federal Government, Despite Debt, Is Adding Jobs Faster Than Private Sector!

Apparently, the liberal regime in Washington, D.C. — the one waging war on the American economy — is not getting the message, either from the public nor from common sense economics: You can't balance the budget when the government unconsciously borrows and prints money with no end in sight. It's not how healthy economies are created. It's how economic turmoil and chaos are created. Still, despite the misrepresentation by the administration about an "economic recovery" and job growth, the fact is, most new job creation over the last few months comes from new hiring by the federal government! The source is none other than Gallup's Job Creation Index:

Gallup's Job Creation Index clearly indicates that state and local governments are in the midst of significant downsizing, no doubt reflecting budgetary issues resulting from recessionary pressures on the tax (and other) revenue that funds these governments.

Hiring at the federal level has apparently to date escaped these same fiscal pressures. Indeed, the federal government appears to be significantly outpacing the private sector in terms of the relative number of jobs created.

This when the federal government is running annual deficit the size of many countries' entire economic output, estimated at an inconceivable $1.3 trillion this year (Wall Street Journal). For a president whose supporters claim is the smartest man alive, not spending more than you take in doesn't seem to be a hard concept to comprehend. The states are doing so. But, in the Age of Obama, we'll all end up working for the government — doctors, automobile manufacturers, insurance agents, bankers. If you don't have a government job yet, be patient. Your time is coming.

Dr. Bob Holsworth Interview, Part 1

Below is the first part of a two part interview with nationally known political scientist Dr. Bob Holsworth, a regular commentator on Virginia and national politics. His articles and commentary can be read in publications and on the Internet, and heard on television and radio. He is a frequent speaker to numerous organizations, heads a consultancy, and is the editor of the widely read blog, Virginia Tomorrow. Today, we talk about the current session of the General Assembly and touch on national politics. FamilyFoundationBlog.com: Dr. Holsworth, it's a great honor to have you answer some questions on our blog about the General Assembly and Virginia politics in general. So, thank you very much for participating in this interview. We greatly appreciate your valuable time and look forward to your insights and are big fans of your blog, Virginia Tomorrow. Are you ready for some questions?

Dr. Bob Holsworth: Thanks very much for the opportunity to be on your site.

FamilyFoundationBlog: Has anything surprised you about this session of the General Assembly? Has the Republican sweep and increased House of Delegates majority created a visible difference or is it too early to tell (i.e., waiting for the budget)?

Dr. Holsworth: Certainly, the Republican sweep in the House has made it even easier for the GOP to control the legislative outcomes in that chamber. But the Democratic control of the Senate can still pose substantial hurdles for the Governor and the House GOP. I was surprised that five Democrats in the Senate supported the Health Care Freedom legislation, symbolically repudiating former Governor Kaine and President Obama. All of these Democrats are in districts where the GOP could field competitive challengers and this tells you just how concerned Democrats have become about the impact of the national mood here in Virginia. At the same time, Senate Dems have summarily dismissed part of the McDonnell agenda such as dedicating royalties for off-shore drilling to transportation and changing the budget cycle. What will happen with the overall budget is still up in the air as Senate Dems actually disagree if they should present a budget that includes some of the tax increases in (former) Governor Kaine's recommended document or acknowledge the political reality that there will be no major tax increases and present a budget accordingly, even if it inconsistent with what they would really want to propose.

FamilyFoundationBlog: Governor Bob McDonnell ran on a jobs-creation platform and de-emphasized social issues. But social issues do play a role in the budget. Do you think he will go so far as to de-fund Planned Parenthood?

Dr. Holsworth: I think that you have phrased the question well. Some folks have said that McDonnell ran as a "moderate." My sense is that he ran as an economic conservative and gave less priority in the campaign to his social conservatism. I fully expect that McDonnell will sign almost all bills with a "social conservative" orientation that emerge from the legislative process. What's not entirely clear is how far his own proposals will move in this direction. He obviously made a symbolic change when he removed sexual orientation from the non-discrimination executive order with respect to state government workers. The question of whether he'll propose a budget amendment to de-fund panned parenthood will be seen by many of his supporters as a test of whether he will implement the values of social conservatism in the budget. If he does, there will be a substantial fight in the Senate and the media will surely portray it as a switch from the "moderation" of the campaign. If he doesn't, he'll disappoint a segment of his core supporters.

FamilyFoundationBlog: If Governor McDonnell proposes a host of "fees" instead of taxes to close the budget gap, how will that affect his support on the right? creation

Dr. Holsworth: If McDonnell is perceived as simply playing semantics with taxes, it will harm him not only with the right, but with many independents as well. He was very clear during the election about his belief that revenue increases should primarily come from economic growth and I would be very surprised if he has a post-election conversion to a different point of view, especially in this political environment.

FamilyFoundationBlog: Governor McDonnell is getting a lot of positive attention right now — giving the GOP response to the State of the Union, doing several national interviews, even one for Newt Gingrich's newsletter. Does he runs the risk of raising his own expectations?

Dr. Holsworth: I think of the smartest moves the new Governor made was to cancel his national interviews the day after his SOTU response. Virginians have made it clear that his first priority as Governor should be the Commonwealth and, in the long run, McDonnell's national stature will be most enhanced by having a strong approval rating in-state.

FamilyFoundationBlog: What chances do you give of real reforms this or next year in areas of budgeting and in recalculating SOQ spending?

Dr. Holsworth: The Senate has already rejected a key McDonnell proposal on changing the two year budget cycle. Recalculating SOQ spending has been an issue that many House Republicans have pointed to over the last few years as a reform necessary to rein in future budget increases. We've seen some willingness from both parties to look at items such as staffing ratios regarding non-instructional personnel. If there ever would be a time where the entire SOQ calculation would be readjusted, it would be in the kind of fiscal environment we have now. But polls show that schools remain extremely high on the public's priority list. In aggregate, school groups (teachers, superintendents, school boards, and principals) are extraordinarily well organized and very politically effective. Moreover, Virginia schools overall seem to perform extremely well — just this week, we ranked third in the nation in AP testing. I believe that the effort for major permanent structural changes in school funding will have substantial hurdles to overcome.

FamilyFoundationBlog: What are your thoughts on former Governor Doug Wilder calling for Tim Kaine's removal as Democrat National Committee chairman?

Dr. Holsworth: Former Governor Wilder noted that he had supported Tim Kaine for Vice-President, but did not feel that the DNC Chair was the best fit for his talents and skills. My guess is that there are a number of Democratic activists who are more comfortable with the sharp edges of a Howard Dean than the more cerebral approach to the position of Tim Kaine. The proof, of course, will be in the November pudding. Kaine will succeed if Democrats do far better than expected. But if November is a Democratic debacle, Kaine will be fingered for part of the blame.

Be sure to check back with us tomorrow afternoon for part two of our interview with Dr. Bob Holsworth as we look at next year's Congressional elections in Virginia, Senator Jim Webb's prospects in 2012, and the Tea Party movement.

Former Communist Eastern Europeans Witness To Optimum Size Of (Small) Government

A recent study by the Sofia, Bulgaria-based Institute for Market Economics used the latest data from the Organization for Economic Co-operation and Development and found that governments in developed countries are too large relative to their private sectors, and sop up too much of Gross Domestic Product to maximize economic growth. Leave it to former Eastern European communists to teach us we're going in the wrong direction with our massive government expansions into, well, everything — automobiles, manufacturing, energy, banking, insurance, housing as well as the impending health care industry takeover. The U.S., by the way, is a member of the OECD. Interestingly, the video below, although not specifically aimed at government-run health care, proves that it is run better the less the government is involved and leads to longer life expectancy. The IME should know. They lived it under communism before its fall.  

From the IME:

The IME study finds the government sector should be no larger than 25% of GDP (and perhaps considerably smaller) to maximize GDP growth.

The average government sector for the OECD countries now exceeds 41% of GDP.

The results indicate that policy makers who are enlarging their government sectors in the name of economic stimulus are likely to be retarding the renewal of economic growth and job creation rather than enhancing it.

The optimum size of government? The smaller the better and we're going in the opposite direction.