Democrats are counting heavily on President Obama's upcoming Labor Day job creation speech to allay the fears of the stock market, the international investor community and the American people. Much like Waiting for Godot, there's been a lot of hype and chatter but very little action.
In fact, considering Obama has no street creds in the area of job creation, and considering few of his advisors have ever created jobs, and considering that two of the most powerful Democrats in the House and the Senate represent the two states with the nation's highest unemployment, it's hard to imagine the president will have an innovative, cohesive or potentially effective job creation plan to roll out in his speech.
Here are five ideas which Obama could announce which could help create jobs and improve the economy. Of course, these ideas are bold -- and Obama is not comfortable with taking bold action --he prefers armchair rhetoric. These ideas also very much go against a Keynesian economic model-- and Obama might not be comfortable with that either. But, then again, since thirty months of Keynesian economic modeling have failed to yield any improvement in the economy, perhaps Obama might consider abandoning the madness and moving over to the free market capitalism team.
1. Create a pro-business environment that encourages investment and growth in areas currently receiving federal subsidies for disaster relief. Creating a tax free zone for five years in Louisiana or Mississippi, areas that still have not recovered economically from Hurricane Katrina, would encourage businesses to relocate to these areas. This move would (a) keep investment dollars in the U.S. (b) create new jobs and hiring opportunities in currently low employment areas (c) eliminate the need for additional federal subsidies in these areas (d) indirectly affect and improve the education systems in these areas as a result of more residents, more jobs and more income.
2. Announce "drill, baby, drill" is back on track, and mean it. Wildcatters and small rig entrepreneurs would rejoice. In addition to creating jobs in states all around the U.S., the announcement would also be an effective way to scare the #@!?# out of the Middle East oil community and would, most likely, result in an immediate lowering in the cost per barrel of oil. Our nation has lost too much credibility and squandered too much American wealth pursuing any number of dubious energy policies. Time to get serious and develop our own resources.