You’ve probably seen the headlines - the J.O.B.S. bill passed in the Senate.
So that means more “jobs” in the American economy, right?
As President Obama and a large portion of the Congress run for re-election, Washington is obsessed with this rather illusory concept of “job creation.” And the “J.O.B.S.” Act, named with an acronym that stands for “Jumpstart Our Business Startups,” is the latest legislative effort to stimulate business startups, and thus, to entice job creation.
The bill actually resembles a hodgepodge of several different legislative agendas. And even if the bill accomplishes what its supporters claim, it is probably still several steps removed from actual “job creation.” It may also be yet another governmental wet blanket thrown on top of an economy that is ready to catch fire.
But before I get in to these latest details, let’s consider what Washington has been doing to “create jobs” over the past few years.
In February of 2009, the federal economic “stimulus” bill became law. It cost us over $850 billion, and it was promised that, as long as the bill passed, the national unemployment rate would not rise above 8%.
Well, the unemployment rate rose well above 8% after the bill’s passage, and it still has still not dropped below that mark. One can argue that the bill was necessary at the time – or not – to prevent further erosion in the economy. But there would seem to be fewer “jobs” in the American economy, in the aftermath of this big Washington spending binge.
Then in 2010, there was the monumental healthcare reform bill. This bill was sold as a means of curtailing healthcare costs, making healthcare “universal,” and, as the President noted, it would prevent the government itself from “going bankrupt.”
It was also sold as a job creation bill. Former Speaker of the House Nancy Pelosi claimed right before the bill’s passage that it would create4 million jobs – “400,000 jobs almost immediately." Since it became law 2 years ago, healthcare costs have skyrocketed, private sector employers have dropped health coverage for some 1-2 million workers, and 400,000 new jobs have yet to be created.
Austin Hill is an Author, Consultant, and Host of "Austin Hill's Big World of Small Business," a syndicated talk show about small business ownership and entrepreneurship. He is Co-Author of the new release "The Virtues Of Capitalism: A Moral Case For Free Markets." , Author of "White House Confidential: The Little Book Of Weird Presidential History," and a frequent guest host for Washington, DC's 105.9 WMAL Talk Radio.