Tuesday, January 4, 2011

Congress, it's time to get to work...

As the beginning of 2011 brings the US a new Congress, we all should look at what exactly we each want/need from government. Many political prognosticators have stated that the size and role of government need to change – Democrats have focused on expanding government to try and assist the economy and to improve the world. Republicans have focused their attention on shrinking the size of government since in their opinion, the government typically is a waste of money.

When President Obama was sworn into office and the debate was on regarding his “stimulus” bill, his economic advisors stated that if the proposed stimulus bill was passed, unemployment would not go above 8%. The bill passed and almost two years later, the unemployment rate for the US is 9.8% and hasn’t seen the rate lower than 9% in over a year.

A big question one should ask though is, how much can government do to improve employment? The government can create jobs by adding to the federal workforce, but these are not the type of jobs most Americans expect. So what else can the government do? The most important thing that they can do is to provide some certainty to the business community. One example is the research and development tax credit. Typically, Congress passes a one or two year extension of this critical tax break for business. Most large businesses don’t have a one year business cycle. They plan today for business three, five or ten years down the line. They invest in research and development today to hopefully develop the next big thing in business tomorrow that will create additional wealth for its shareholders. Another role that the government can have in the creation of jobs is related to education. Employers need qualified employers that are adept at the changing global economy and have the ability to think on their feet and adjust and improve the business processes. Are candidates today able to look at a potential problem, develop a plan to fix the problem with limited costs? Currently, the US educational system is a failure that rewards mediocrity and not excellence. Schools are forced overrun with labor costs. One teacher’s union representative recently said something to the effect of, “once students start paying dues then I’ll focus on the students welfare.” School funding isn’t the only problem with the educational system. The students that graduate, typically are not qualified for the work. The tech community saw that recent graduates in the San Diego area were not very adept at math and science. They decided that they would create a school that focused on math and science since these were the skills needed to succeed in their business. High Tech High was created and is now a model for how the business community can get involved in the educational system and create a system that graduates students that are ready for the business world.

Is the government creating more High Tech Highs? No. Are they providing the stability and certainty that the business community needs to create jobs and expand their businesses? No.

The new Republican leadership in the House of Representatives and the existing Democratic leadership in the Senate better start exploring new ways to do business if they want to remain in office. The American public is tired of all the fighting within Congress and the lack of progress in fixing the problems facing the American public. Instead of political soundbites, Congress should be focused on solving problems and getting the American economy back on the right track. Every day that Congress is not focused on creating jobs is a day wasted in Congress. Let’s hope that with the recent elections, those remaining in DC will listen to the American public and start focusing on the issues that Americans care about. We can only hope that Speaker Boehner is able to lead the Republicans in the House forward with a proactive platform that will create jobs since the previous leadership, or lack thereof, by President Obama and Speaker Reid did nothing to create jobs. We can afford to wait another couple of years for the American economy to come out of its tailspin…

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