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The Government Does Not Create Jobs, President Obama
by Austin Hill
9/18/2011 

If I could get close to President Obama, close enough to speak to him, I’d like to ask him this question: “Mr. President, how, exactly, is a job created?” 

It’s a rare opportunity for one to speak directly with the President of the United States, and I’m not anticipating that any of the privileged few who speak with Mr. Obama regularly – members of his Administration and the White House media correspondents for example – will approach this subject with him.  But after nearly three years of the President claiming that he is “creating (or ‘saving’) jobs,” even as unemployment rises and actual job creation has stalled, questions about the President’s policies have quite naturally begun to emerge. 

Typically the inclination is to ask “where are the jobs you promised us Mr. President?”  To this, we have heard the President offer clever responses like “shovel ready wasn’t as..uh…shovel-ready as we expected” (he made this little quip with a chuckle in his voice back in June, at a meeting of his Council on Jobs and Competitiveness in North Carolina when he was confronted with the problems of federal government regulations delaying construction projects for months, or even many years).  But Americans need to take a step back, and ask a preliminary question – not a question about “where are the jobs?” but rather, “how is a job supposedly created in the first place?” 

President Obama frequently juxtaposes “Wall Street,” i.e., wealthy bankers and investors, from “Main Street,” i.e. everyday working class people, and he insists that his policies are supportive of those on “Main Street.” Given his affection for all us “Main Street types,” he would do well to look to the wisdom of Main Street for an answer to the question “how is a job created?,” and for some clues as to why job growth isn’t happening. 

Take for example a Main Street couple named Steve and Gwynn.   The married business partners co-own own a small chain of six Mexican food restaurants, with locations in two different Western states.  While consulting with them recently on some of their marketing and advertising strategies, I got an earful from them about how the federal government is impacting their business – and the impact has not been positive. 

For one, Steve and Gwynn’s greatest struggle with advertising is not about getting customers in to their restaurants.  While the past three years have been a struggle for them, their revenues for 2011 have thus far out-paced 2010 on a month-by-month basis, and their Limited Liability Corporation is doing well financially. 

Interestingly, Steve and Gwynn’s biggest challenge is with labor.  While the hourly rate at which they employ kitchen help is slightly over the government mandated minimum, they still have a difficult time finding and retaining workers for these otherwise “entry level” positions. 

Be sure to read the rest of this column at Townhall


 
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