The simple fundamental issue that will determine how strong the economy is next year is the number of jobs created. The recent recession caused the elimination of many jobs that will never be replaced because they have been converted to technology or partially eliminated by better productivity via technological improvements. Further, because of the amount of overbuilding that took place due to the cheap credit and housing boom, it will take awhile before new construction returns to peak levels.
In order to stimulate jobs, we need to do three things. The first is to promote energy efficiency programs that stimulate remodeling and installation of renewable energy and conversion to domestic energy sources on old residential and commercial real estate. This level of effort will create construction jobs, energy jobs and to the extent we can use domestic products, manufacturing jobs.
The second thing is to truly start to work on infrastructure repair. We have many opportunities to improve roads, bridges, transportation facilities and other public structures. This work is actually necessary and has to be done before the actual structures start to collapse. Doing it on an expedited basis can jump start the economy and provide millions of jobs.
The third thing is to make sure the business environment does not discourage hiring in this country. One thing would be to reform the tax basis to one base on a tax on consumption. Another thing would be to eliminate health care costs as a concern. The actual pay given to an employee is no longer the most significant factor in hiring. It is the associated costs.
No comments:
Post a Comment