Help Wanted (Why Presidents Don't Create Jobs)

New York Times ^ | 5 September 2004 | ROGER LOWENSTEIN

[shrinkermd]

There is one problem with such thinking: virtually no one involved with presidential politics, and virtually no economist, believes it. Robert Barbera, chief economist at the brokerage firm of ITG/Hoenig, says that in his 30 years in the business, ''the notion that presidents create and lose jobs is the most grotesque mischaracterization of the economic backdrop'' that he has witnessed.

The emphasis on jobs is likely to intensify during the campaign's final weeks, especially given that in August the Bureau of Labor Statistics reported the weakest monthly job totals in a year. The news, predictably, was treated as if the president had taken home a D. So it is striking that neither Bush's economists nor Kerry's nor many who have served in administrations past really believe that job numbers are a reflection of presidential performance. Robert Reich, secretary of labor under Clinton, says bluntly, ''Job numbers are largely a function of population and the business cycle, and the business cycle has its own rhythm.'' Administrations should be able to improve the quality of jobs -- shorthand for raising both the requisite skill level and the compensation -- Reich argues, but the lead time is so great that presidents have little political incentive to try.

[shrinkermd]

Good article, but I am old enough to remember when any RAT who wanted to be elected just had to run against the "Hoover Depression." The economic ignorance and wishful thinking in the electorate is the real problem we face.

[speedy]

The Times is only saying this because the employment data is looking better and better, and they don't want Bush to have any credit for it. They would never have run such a story when Clinton was benefiting from the dot com boom.

[mnehring]

Thank you for posting this.

I personally never bought into the line that there are millions of people out there who want a job but there are none available. I think the big problem is that people are not willing to evolve in the new job market.

I know, just in my office region we have about 50 openings, and company wide, hundreds, and many stay open for months with out having qualified applicants.

Just look in Monster.com or other job sites. There are thousands, if not millions of opportunities out there if someone is willing to learn a new skill or start at a lower level and grow.

I get really irked everytime Kerry complains about jobs. Isn't he worth almost a billion dollars (OK, Mamma T is), if he cared so much, why doesn't he personally hire a few thousand people and sell one of his Italian villas to pay for it. Oh, wait, he could only get a government job all his life, he probably has no idea how to run a business.

I would love to see a comparison of how many people W has hired through his life versus Kerry.

[freekitty]

Corporations create jobs and run the government. From what I understand there has been no increase in jobs for 25 years.

[tomnbeverly]

In Liberty's Century there are Hundreds of Thousands of Small Business and home business jobs that have been created and that is why the Unemployment numbers go down but the job numbers don't match what the economists predict...

[FairWitness]

Robert Reich, secretary of labor under Clinton, says bluntly, ''Job numbers are largely a function of population and the business cycle, and the business cycle has its own rhythm.''

I don't believe that Reich is anywhere near this honest when he goes on TV however. Then it is always "Bush's fault" if things are not going wonderfully well.

[Willie Green]

ALL federal policies and regulations have a direct impact on the private sector, and in turn, employment. Changes to those federal policies and regulations benfit some industries, and are a detriment to others.

The current Administration pursues policies that undermine our domestic industries and businesses by promoting overseas investment and importation of goods and services. The Administration also undermines our domestic labor market by flooding it with immigrants, both legal and illegal.

These are the facts.
The Administration and the president ARE responsible for the hostile domestic business climate that is creating a downward job churn.
The fact that Kerry is clueless on these issues is irrelevant.

[Moonman62]

Robert Reich, secretary of labor under Clinton, says bluntly, ''Job numbers are largely a function of population and the business cycle, and the business cycle has its own rhythm.''

The business cycle and indirectly employment are caused by the degree of goverment meddling with the economy.

[Salvation]

**I think the big problem is that people are not willing to evolve in the new job market.**

Bingo! You win!

[zencycler]

I think the big problem is that people are not willing to evolve in the new job market.

It's also the reason why the household survey of jobs, currently being ignored, should carry more weight in our evolving economy.