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Business Groups, Conservatives Split on Jobs

If the recovery happens, who'll get the credit?

 

recent article at PA Independent sheds some light on a telling split between business organizations and political conservatives on President Obama's American Jobs Act.

The National Federation of Independent Businesses, the Chamber of Business and Industry of Centre County, and Lockheed Martin all told Caleb Taylor that the AJA will help boost sales by putting people back to work.

Notably, NFIB state director Kevin Shivers expressed disappointment that the plan may not go far enough to boost sagging demand:

"Tax credits are great, but if you don't have customers coming in to buy stuff, few businesses are going to make more investments," said Shivers.

Mr. Shivers is echoing what his member businesses are sayingKamran Afshar, the economist who conducts a quarterly survey of Lehigh Valley businesses for the Greater Lehigh Valley Chamber of Commerce, has also called for more infrastructure stimulus.

All of these organizations evidently buy into the idea that Obama's bill will help them by putting more money in people's pockets, giving them more customers. Early analyses of the bill suggest they are correct. Macroadvisers and economist Mark Zandi have scored the AJA as creating between 1.3 million and 1.9 million jobs, respectively.

By contrast, Pat Toomey and Teri Adams of the Independence Hall Tea Party in Philadelphia oppose the President's plan on the grounds that stimulus spending allegedly doesn't work.

But the 2009 stimulus did work. The Recovery Act was designed to create or save 3-4 million jobs, and indeed, that is what it did. Some studies put the number even higher, but all of the major analyses of the stimulus confirm that the number of jobs created was within the target range.

If the stimulus failed to get us to full employment, it is most likely because it was too small, and was soon cancelled out by massive layoffs at the state and local level.

At the federal level, Tea Party favorites like Pat Toomey are piling on, pursuing an agenda of immediate spending cuts that the Fed has warned will hurt job growth.

What might account for this split between businesses and people who are narrowly focused on electing Republicans in 2012?

An anonymous Republican aide gave Politico a very cynical answer:

"Obama is on the ropes; why do we appear ready to hand him a win?" said one senior House Republican aide who requested anonymity to discuss the matter freely.

What's striking is how perversely sensible the aide's logic is.

Who will voters credit if President Obama is presiding over a strong recovery in 2012? House Republicans? Rick Perry? Sam Rohrer?

No, if the American Jobs Act works, voters will reward President Obama and the Democrats. So why would the people who are focused on electing Republicans in 2012 want to do anything that would help the economy before the election?

About this column: Jonathan Geeting, keeper of the Lehigh Valley Independent blog, joins us for occasional thoughts on local/regional government and political issues. Related Topics: Obama, Republicans, and Sen. Pat Toomey

Rosemary B

10:58 am on Tuesday, September 20, 2011

"No, if the American Jobs Act works, voters will reward President Obama and the Democrats. So why would the people who are focused on electing Republicans in 2012 want to do anything that would help the economy before the election?"

If this logic is true, then our country is certainly doomed because that means that if a Republican gets elected President then all the Democrats will be working against them, no matter what. And that will continue forever? We all, and our people in government, must grow up and do what is best for our country or we are all doomed

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An interested bystander

3:24 pm on Tuesday, September 20, 2011

If President Obama really wanted to help the working class in this country, he would have included a waiver of Davis Bacon in his proposal so that we could get the largest number of people working, and being paid good wages.

But he can't do that because he needs union money to get reelected.

So when Obama asks others to put Country before Party, he should look in the mirror, show some leadership and do it first. Then he really would be the adult in the room.

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